“The Russian PJSC Novatek, which heads the Arctic LNG-2 project, sent a message about force majeure to some buyers of the facility,” the material says.
It is noted that the sanctions imposed by the United States on the project in November make deliveries impossible for now.
The prospects for the Arctic LNG 2 project are vague.
Force majeure is a legal clause that allows companies to suspend deliveries due to factors beyond their control. The development increases supply risks to other markets as ships have been rerouted from the Red Sea in recent days due to attacks on them there.
Bloomberg writes that although the prospects for Arctic LNG 2 were already clouded by the US measures, the move poses serious challenges for the project and could limit additional LNG supplies to the global market this winter.
Novatek planned to begin production on the first of three lines before the end of the year, with the goal of receiving first cargo from the plant in early 2024.
This project is very important for Russia
Arctic LNG 2 is critical to Russia’s ambition to more than triple LNG production by the end of the decade.
“If the project is significantly delayed or cargoes are not shipped next year, it will severely limit global LNG supply growth to about 2.5% versus the 3.5% we had forecast,” said Bloomberg Intelligence analyst Thelon Custer.
Energy Aspects Ltd analyst Jake Horslen said exports from the project would depend on Novatek’s ability to supply Arctic LNG 2 volumes under existing forward contracts or spot deals “with a limited number of potential buyers willing to ignore US sanctions.
US sanctions against Arctic LNG-2
On November 2, the Arctic LNG 2 project was included in the US sanctions list regarding Russia’s production and export capabilities in the energy field.
US Assistant Secretary of State for Energy Geoffrey Pyatt stated that Washington aims to “strangle” this Russian project.
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2023-12-21 19:23:17
