Russia’s Arctic LNG 2 Project Hits Record Low Production
The Russian project has seen a massive drop in production. On average, it has produced less than 10% of what it did since October. This is the lowest level of production for the project since September 2023.
The project was important to Russia‘s plans to develop the Northern Sea Route and increase its liquefied natural gas (LNG) exports. In response to sanctions imposed by the US, Russia has faced challenges in achieving these goals.
US Sanctions Take Effect
In August and September, the US State Department imposed sanctions on two vessels and two entities connected to the Arctic LNG 2 Project. This was a result of Novatek‘s involvement with Russia after its full-scale invasion in 2022. The sanctions have forced Novatek to scale down plans for the project.
Production Has Virtually Stopped
The sanctions have had a significant impact on production levels, causing them to drop by more than 90% since October. This is a record low for the project, which was previously crucial to Russia’s energy goals.