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Arctic LNG-2 Suspends Production amid Sanctions: Reuters


Russia’s Novatek has suspended production at its Arctic LNG 2 facility due to sanctions and a shortage of gas tankers, sources told Reuters.

  • "Train one will remain shut until at least the end of June," a source told Reuters, adding that construction activities for the project were still ongoing.
  • The projected had hoped to start commercial deliveries in Q1, but plans complicated by sanctions in November. This forced Novatek to declare a force majeure.
  • The lack of Arc7 ice-class tankers is also a challenge for the project.
  • 21 tankers were planned. 15 will be produced by Russia’s Zvezda, but 3 orders from Hanwha were cancelled due to sanctions on Sovcomflot.
  • Only 3 suitable tankers have been built for the project to date.

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