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CEO of the Russian natural gas production company Novatek, Leonid Mikhelson, said on Friday that US sanctions on the company’s future Arctic 2 liquefied natural gas project constitute “a recognition of our professionalism.”
He added during a conference in Samarkand that Qatar, Russia and the United States will be able to meet future global demand for liquefied natural gas.
On Thursday, the United States imposed sweeping new measures against Moscow over the war in Ukraine, targeting Russia’s future energy capabilities among other goals.
The Russian company Novatek is leading the Arctic 2 project and owns 60% of the project. And
Other shareholders include French energy giant Total Energies, China National Petroleum Corporation (CNPC), China National Offshore Oil Corporation (CNOC) and Japan’s Arctic LNG, each owning 10 % in the project.
The project is expected to begin producing supercooled gas by the end of this year or early 2024.
Arctic will be Russia’s third large-scale project to produce liquefied natural gas after Sakhalin 2, which is led by Gazprom in Russia’s Pacific region, and Yamal LNG, also affiliated with Novatek.
This would help Russia achieve the goal of winning 20% of the global LNG market by 2035, up from about 8% currently.
The production capacity of the three Arctic 2 LNG lines will be 6.6 million tons per year for each line.
Investments in the project are estimated at approximately $21.3 billion.
