As reported by FAN Transport News, Russian gas producer Novatek is making strides in its efforts to navigate around Western sanctions affecting its Arctic LNG 2 facility, with significant assistance from Chinese entities.
The Arctic LNG 2 site, located in the remote Siberian region, was initially planned for construction at a major shipyard using three floating concrete pontoons. These sections were intended to be towed into position at a terminal on the Gulf of Ob and then permanently submerged. However, this operation faced major disruptions following Russia’s invasion of Ukraine in 2022 and subsequent sanctions imposed by Western nations. While Train 1 became operational in 2024, Train 2 encountered delays due to export restrictions on essential components from Western suppliers; it only commenced operations last month.
Chinese state-owned enterprises currently hold a 20% stake in the Arctic LNG 2 project. Presently, these Chinese gas companies are the sole buyers of the plant’s output, attracted by competitive pricing despite potential American sanctions looming over them.
This week marked a notable event as the LNG carrier Arctic Vostok docked in Beihai to deliver what is now the seventh cargo from Arctic LNG 2. With winter approaching and ice conditions intensifying in the Russian Arctic, this may be one of their final shipments for this year. Nevertheless, Novatek continues pushing boundaries; Bloomberg recently highlighted that September saw an impressive average liquefaction rate of 18 million cubic meters per day—14% higher than previous records—though this surge may be temporary as operations will halt once eastbound navigation concludes.
To extend shipping opportunities for its products beyond seasonal limitations, Novatek had envisioned developing a fleet of icebreaking LNG carriers similar to those used for exports from Yamal LNG terminal. However, sanctions disrupted these plans too: South Korean shipbuilder Samsung Heavy Industries suspended work on a joint venture with Russian yard Zvezda shortly after restrictions were implemented back in February 2022. In response to these developments, Zvezda canceled their collaboration and initiated legal action while SHI ended their contract as well. The absence of Korean support has significantly slowed construction at Zvezda; none of the vessels have entered commercial service yet. The first vessel named Aleksey Kosygin began sea trials earlier this year but returned to drydock by mid-July according to insights shared by industry consultant Ben Seligman.
