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Russia’s LNG Expansion Threatened by US Sanctions


Russia’s plan to rapidly expand its LNG exports are stalling due to US sanctions delaying shipments from the new Arctic LNG 2 project, according to Bloomberg.

  • The Arctic LNG 2 project started production in December but has not yet exported any cargoes due to US sanctions, according to Bloomberg.
  • It also had to cut output in February amid a lack of storage.
  • The project is in talks to sell its first shipment to China, although there is no timeline.
  • The US imposed sanctions on Arctic LNG 2 in November, which also kiboshed plans for the project to receive specialised icebreaker vessels.
  • Few firms are also willing to risk the wrath of US sanctions by taking cargoes from the plant, even on a spot basis.
  • Major shareholder Novatak is planning to send most cargoes to China, but also some to India.

Source: Bloomberg

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