Russian Arctic LNG 2 project reduces gas production to almost zero – Bloomberg

Russia's Arctic LNG 2 project has reduced production from gas fields to almost zero in November 2024 due to Western sanctions.

Source: Bloomberg

Details: It was noted that the fields feeding the plant pumped an average of 0.4 million cubic metres of gas per day on 1-10 November.

Bloomberg estimated that this is a drop of more than 90% from the average production in October. This is also the lowest average production level for the project since at least September 2023.

Even during pre-commissioning and commissioning of the first Arctic LNG 2 train in the fourth quarter of 2023, its fields produced between 2 million and almost 14 million cubic metres per day.

Arctic LNG 2 is key to Russia's ambitions to increase LNG exports and develop the Northern Sea Route. Over the past year, it has been the subject of several waves of Western sanctions.

The plant's design capacity is 19.8 million tonnes of LNG per year, but currently, only one production line is in operation, capable of producing 6.6 million tonnes per year.

Background: 

• The Arctic LNG 2 gas terminal in Russia has suspended the liquefaction process due to restrictions imposed by Western sanctions that complicate the transportation and sale of products.
• Russia uses a network of shell companies stretching from Dubai to China to transport gas from the Arctic LNG 2 project.

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