Progress continues on Russia’s Arctic LNG 2 despite shipbuilder layoffs due to sanctions

Russia’s Novatek PJSC has successfully begun production at its Arctic LNG 2 project, despite facing U.S. sanctions. The first train of the project has started operating, according to Russia’s Deputy Prime Minister Alexander Novak. This project is crucial to Russia’s goal of significantly increasing its LNG production and could help alleviate the tight global market for natural gas.

The project has faced challenges due to U.S. sanctions, with Novatek posting force majeure and foreign partners in the project also declaring force majeure. However, the project’s first train is now operational, and the plant is expected to increase Russia’s LNG production to 100 million tonnes by the end of the decade.

The Arctic LNG 2 project will have three production trains and aims to produce 19.8 million tons per year. While the project may face shipping restrictions due to U.S. sanctions, Novatek is working on acquiring ice-class tankers for the project, which could impact the exports of Arctic LNG 2. Despite the challenges, the project has made significant progress and is expected to contribute to meeting global energy needs.

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