Sanctions chip away at Russian Arctic LNG projects [Gas in Transition]

Sanctions chip away at Russian Arctic LNG projects [Gas in Transition]

-
Natural Gas News
Sanctions chip away at Russian Arctic LNG projects [Gas in Transition]

Summary

While its effects on LNG carriers are part of the problem, sanctions affect many elements of the Arctic LNG-2 project as well as the potential for Russia to further develop its other planned Arctic LNG production facilities. [Gas in Transition, Volume 3, Issue 11] by: Vincent Wee

Russia has a stated goal of boosting LNG production capacity to 140mn tonnes/year and take up to 20% of global market share by 2035, with much of this expansion expected to come from its Arctic projects. There have however been concerns recently about the effect of Western sanctions on Russia's ability to carry out its planned expansion due to a shortage of LNG carriers to transport the fuel. While the transportation issues are part of the problem, the root cause runs much deeper, with the sanctions seen having wide ranging effects on the Arctic LNG-2 project in particular, as well as the potential for Russia to further develop its other planned Arctic LNG production facilities. A long-running series of sanctions has caused a two-pronged problem. The most recent sanctions involve measures aimed specifically at the two floating storage units that are a critical part of the export infrastructure for ...