The launch of the second production line at Russia’s Arctic LNG 2 project, marked by the first carrier docking at Train 2, signals progress despite sanctions, but the plant continues to face significant operational and logistical hurdles.
Production and Operational Status
- Train 2 Startup: The ice-class LNG carrier Christophe de Margerie berthed at Train 2 of the Arctic LNG 2 project’s Utrenniy terminal on September 22, 2025. This loading suggests that the majority owner, Novatek, has overcome initial startup difficulties, including the need to replace original gas turbines with an electric drive due to sanctions.
- Reduced Capacity: Despite the successful startup, both production lines (Train 1 and Train 2) are reportedly operating at only half capacity. This limits the plant’s current maximum production to approximately 6.6 million tonnes per annum (mtpa).
- Mothballed Construction: The construction of a planned third train has been mothballed due to the impact of sanctions.
Sanction Circumvention and Sales
The delivery of sanctioned LNG cargoes marks a significant milestone for the project:
- First Buyer Found: Weeks before the Train 2 startup, Moscow found a buyer for the sanctioned LNG, ending more than a year during which up to a million tons of supercooled gas remained afloat.
- China’s Role: The LNG carrier Arctic Mulan made the first delivery to PipeChina’s Beihai terminal in late August, with five additional offloadings following quickly. China’s acceptance of the sanctioned LNG is viewed as a clear political message signaling a deepening of energy ties with Russia and a test of U.S. sanctions enforcement.
- Timing and U.S. Silence: Several vessels carrying sanctioned LNG began moving toward China as the Trump-Puting Anchorage summit was unfolding. The Trump Administration has been criticized by a bipartisan group of senators for its “markedly silent” stance and “failure to enforce even existing sanctions.”
Logistics and Arctic Fleet Shortage
A major challenge for the project remains the shortage of specialized ice-capable gas carriers:
- Vessel Constraint: As winter sea ice returns, the shortage of ships will likely force Novatek to scale down production significantly or even shutter the plant.
- Current Fleet: Novatek currently has only a single Arc7 ice-class vessel, the Christophe de Margerie, at its disposal. A second, the Aleksey Kosygin, is in drydock but may be readied before winter.
- Capacity Estimate: With just two Arc7 carriers, Novatek would likely be able to conduct a weekly loading at Arctic LNG 2, resulting in a production rate of around 3.5 mtpa.
Legislative Response
In the U.S., a bipartisan group of senators is drafting legislation to address the issue:
- SHADOW Fleet Act: This bill aims to impose sanctions on Russian energy exports, including LNG, by targeting the “shadow fleet” of vessels used by Russia to circumvent existing sanctions.
- White House Direction: The bill’s prospects are uncertain, as the Trump White House has not announced any new sanctions specifically targeting Russia’s LNG sector since taking office in January.
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Source: gCaptain
