sanctions against Arctic LNG-2 may deprive NOVATEK of 4% of the market – Kommersant
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State agency “RIA News» On November 20, it published an analytical material assessing the impact of American sanctions on the Arctic LNG-2 liquefied natural gas project being developed by the Russian company NOVATEK. In the material, Deputy Head of the National Energy Security Fund Alexey Grivach estimates the project’s potential at 3-4% of the entire global LNG market. Under sanctions, the agency concludes, the company may lose this share.
The head of NOVATEK, Leonid Mikhelson, the agency notes, views the restrictions as “an assessment of the company’s professionalism” and suggests that the United States is trying to return prices to the 2022 level. “Tariffs rise with any supply restriction,” Mr. Grivach told the agency. “If, due to sanctions, some of the fuel does not reach the market, consumers will feel it.” According to him, how successful the sanctions will be depends on the buyer countries. In this regard, RIA Novosti reminds that Japan does not intend to leave the project and will try to achieve an exception from the sanctions regime.
Sanctions, introduced The United States, on November 2, envisages a ban on all transactions with Arctic LNG 2, but a special OFAC license until January 31, 2024 allows certain transactions necessary to “dispose, transfer or facilitate the alienation or transfer of debt or assets” of the company. US State Department promised track all business structures participating in the project.
Arctic LNG 2 is the second major project of NOVATEK (MOEX: NVTK) for LNG exports after the Yamal LNG plant. It is located near the northwestern coast of the Gydansky Peninsula in the Tazovsky district of Yamal. The capacity of each of the three lines will be 6.6 million tons per year, the volume of stable gas condensate will be up to 1.6 million tons per year. The company plans to open all lines from 2023 to 2026.
Read more about sanctions in the Kommersant article. “Suddenly wider.”
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