Latest Arctic LNG 2 Sanctions Threaten Japan Energy Security Drive

The latest US sanctions on Russian LNG could threaten Japan’s drive for energy security with the measures directly targeted at a major entity involved in the development the Russia Arctic LNG 2 project according to Bloomberg.

• Mitsui was already checking the impact of previous sanctions to assess whether the project will be able to start by year-end. In September the US imposed sanctions on the use of Russian transshipment terminals for LNG in Kamchatka and Murmansk creating logistical difficulties for Japan’s planned deliveries from the facilities.
• “This could potentially have a more significant impact compared to previous sanctions,” said Kaushal Ramesh at Rystad Energy. “This is because it directly targets the operating company rather than being indirectly related to the projects.”
• If western-aligned offtakers require deliveries they could possibly be granted exemptions to the sanctions, with phasedown dates, said Ramesh.
• A Mitsui spokesperson said the firm will closely examine the impact of the new sanctions on Arctic LNG 2.