Russia and Arctic LNG 2 hit by Western sanctions
The project has slashed gas output in recent months.
Russia's largest producer of liquefied natural gas (LNG), has suspended production at its Arctic LNG 2 project due to sanctions and a shortage of gas tankers, two sources familiar with the matter told Reuters on Tuesday.
The project had been hoping to start commercial deliveries in the first quarter of this year. But plans were complicated last year when it was included in Western sanctions over Russia's conflict in Ukraine, prompting foreign shareholders to freeze participation and Novatek to issue a force majeure.
The decision to suspend converting natural gas to LNG is a blow to Russia's goal to capture a fifth of the global LNG market by 2030-2035.
It is currently the world's fourth-largest LNG producer with annual exports of 32.6 million metric tons.
Novatek, which started tentative LNG production at the first of the plant's planned three trains in December, did not reply to a request for comment.
"Train one will remain shut until at least the end of June," one of the sources told Reuters, adding that construction activities for the project were still ongoing.
The sources said the main problem was a lack of specialist tankers capable of transporting LNG - which is cooled to minus 163 degrees Celsius (minus 261.4 Fahrenheit) - and cutting through thick sea ice.
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