NOVATEK sharply reduced gas production at Arctic LNG-2 – Kommersant

Gas production at Arctic LNG 2 fell sharply in the first two months of the year amid delays in liquefied natural gas (LNG) shipments, sources say “Vedomosti” with reference to statistics from the Ministry of Energy. According to the publication, in February gas production under the project amounted to 83 million cubic meters. m, which is three times lower compared to January and five times lower than in December 2023.

According to Vedomosti’s interlocutors, NOVATEK (MOEX: NVTK) increased gas production from the project ahead of its expected start-up late last year. In November, production averaged 154 million cubic meters. m, and in December reached 425 million cubic meters. m. At the end of the year, the bulk of the gas at Arctic LNG-2 was extracted specifically for liquefaction, the newspaper’s sources noted. But already in January, gas production at the project decreased to 250 million cubic meters. m.

Arctic LNG-2 is part of NOVATEK’s project to build LNG production lines, all of which are planned to open before 2026. In November 2023, Arctic LNG 2 came under sanctions. NOVATEK warned clients about force majeure related to supplies from the project. After that, according to Kommersant, about force majeure under their contracts in the project announced foreign shareholders of the project are the French TotalEnergies, the Chinese CNPC and CNOOC, as well as a consortium of the Japanese Mitsui and JOGMEC.

As it became known, this year NOVATEK may not receive six LNG tankers from the Korean shipyard Hanwha Ocean, which were intended to export gas from Arctic LNG-2. NOVATEK does not have a fleet for commercial shipments from the project, despite the launch of the first line of the project.

Details – in the material “Kommersant” “A rare tanker will sail to Gydan”.

Laura Keffer