Mitsui & Co. recalled its employees from the Arctic LNG-2 project – Kommersant
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Japanese company Mitsui & Co. recalled all its employees from NOVATEK’s Arctic LNG-2 project to develop liquefied natural gas (LNG), which is due to start operating in 2024. A Japanese newspaper writes about this Sankei with reference to sources.
According to the newspaper, Mitsui is a co-owner of the Arctic LNG-2 project through the J-Arc company. NOVATEK owns 60% of the project, the remaining 40% is equally divided between the French company TotalEnergies, the Chinese CNPC and CNOOC, and Mitsui.
Sankei’s interlocutors said that the recall of Mitsui employees is aimed at protecting them from US sanctions. Their departure does not mean that the Japanese company will leave the business, so J-Arc’s interests will be preserved.
Reuters previously wrote: NOVATEK informed shareholders that sanctions would make it impossible to supply LNG to Arctic LNG-2. November 2 project hit under US sanctions, which include a ban on all transactions with it. At the same time, a special OFAC license, until January 31, 2024, allows certain transactions necessary for the “disposition, transfer, or assistance in the alienation or transfer of debt or assets” of a company.
NOVATEK representatives said that the Arctic LNG-2 project would be launched at the end of 2023 or beginning of 2024. It provides for the production of about 20 million tons of LNG and more than 1.5 million tons of gas condensate.
As Kommersant previously wrote, the project shareholders declared force majeure under their contracts, that is, they abandoned their responsibilities for financing and fulfilling offtake contracts for LNG. Prior to this, NOVATEK sent customers notices of force majeure for LNG supplies from its portfolio.
Read more in the Kommersant article. “”Arctic LNG-2” is now on its own”.
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