Mitsui to Comply with Arctic LNG 2 Restrictions After New US sanctions

Japan's Mitsui is committed to complying with restrictions related to Russia's Arctic LNG 2 LNG project after fresh US sanctions.

• Mitsui are in touch with its project partners, the Japanese government and other parties "to discuss next steps" according to Reuters.
• The sanctions do not apply to the project itself nor to its shareholders but apply to a few Russian companies and one UAE firm providing architecture, construction and engineering services.
• It complicates how Mitsui and JOGMEC provide support for the project and could also delay production from Arctic LNG 2.
• Sanctions also apply to a Russian ship construction company that will operate two LNG floating storage units and to two storage vessels set to operate on the route.
• Arctic-2 is led by Russian firm Novatek which holds a 60% stake with other shareholders CNOOC, TotalEnergies, CNPC and Japan Arctic LNG (a consortium of Mitsui & Co, Ltd. and JOGMEC) each holding a 10% stake.
• The project will have a total production capacity of 19.8mtpa from three trains with the first expected to start producing LNG at the end of this year.