Supply From Russia’s Arctic LNG 2 Project Halted by US Sanctions
- Novatek-led Arctic LNG 2 planned to start production shortly
- Gas prices rise as move adds to supply risks in the market
The resource base for Novatek's Arctic LNG 2 project in the Arctic circle.
Photographer: Natalia Kolesnikova/AFP/Getty ImagesThis article is for subscribers only.
The start of supply from Russia’s newest liquefied natural gas project will be delayed after the company declared a force majeure on shipments in the wake of US sanctions. European gas prices rose on the news.
Russia’s Novatek PJSC, which leads the Arctic LNG 2 project, sent force majeure notices to some of the facility’s buyers, said people familiar with the matter who declined to be named as details are private. Sanctions that the US imposed on the project in November are making it impossible to make shipments for the time being, they said.