Russia’s authorized LNG plant in the Arctic launches a new line
20 May 09:16
Russia’s newest liquefied natural gas (LNG) plant in the Arctic has started using a second production line, despite the fact that the company remains under strict Western restrictions. This is reported by "Komersant Ukrainian" with reference to Bloomberg.
“Arctic LNG 2, the Kremlin’s flagship project, halted large-scale production in October as sanctions scared off foreign buyers and ice buildup made it difficult for ships to arrive. Although the plant managed to ship several shipments in the summer, none of them found buyers.
However, despite the limitations on equipment and technical expertise, the facility has continued to expand, and Line 2 has now produced its first drops of fuel, people familiar with the project said. They asked not to be identified because they were not authorized to speak to the media.
The second production line, or Line 2, has an annual capacity of 6.6 million tons. It was recently approved by the regional government.
Novatek is the plant’s largest shareholder. Last month, the plant appeared to be flaring gas, but it is unclear whether it is currently producing liquefied natural gas.
The situation around Arctic LNG 2 demonstrates Russia’s attempts to circumvent international sanctions and continue implementing strategic energy projects despite diplomatic and economic isolation. The launch of the second line takes place in the context of a general reorientation of Russian energy exports from the European direction to the Asian one, primarily to China and India.
Energy market experts point out that without access to Western technology and with restrictions on maritime transportation, the plant’s full operation remains in doubt. At the same time, the Russian government is making significant efforts to demonstrate technological self-sufficiency and find alternative logistics routes.
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Europe and Russian gas
As of early 2022, the EU was 40% dependent on Russian gas. In 2021, 65% of the gas purchased by Germany was Russian. In the third quarter of 2023, only 12% of the gas imported by the EU remained Russian.
At the same time, some EU countries, such as Hungary and Slovakia, remain dependent on Russian gas. These countries’ contracts with Gazprom provide for gas supplies through the Ukrainian gas transportation system. Austria has signed a contract for gas supplies until 2040, but it has already declared that it has eliminated its dependence on Russian fuel.
After both Nord Stream and the Ukrainian gas transportation system are shut down, Russia will be able to supply gas to Europe only through the Turkish Stream.
According to the Center for Research on Energy and Clean Air (CREA), since the beginning of the full-scale Russian invasion, the European Union has purchased 208 billion euros worth of energy from Russia.
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