PRESS: Novatek freezes all key future projects except Arctic LNG 2

MOSCOW, Mar 25 (PRIME) -- Russian gas producer Novatek has frozen all its large future projects except the first line of the liquefied natural gas (LNG) plant Arctic LNG 2, business daily Kommersant reported on Friday citing sources.

"Arctic LNG 2 is Novatek’s second largest LNG export project after Yamal LNG with capacity of 16.5 million tonnes a year launched in 2017. They were to be followed by Obsky Gas Chemistry Complex and Obsky LNG – now, according to the information available to Kommersant, those are halted," the newspaper reported.

Sanctions barred financing for U.S. $1 billion Arctic LNG 2 from VEB.RF, Otkrytiye and Sberbank. Novatek’s tankers with spot cargo could not enter the European ports, while the E.C. customers do not want to buy them, although there is no formal prohibition on purchases of Russian gas.

Arctic LNG 2 was 57% financed as of the end of 2021 and it is unclear who will replace TotalEnergies which us leaving the Russian market. Kommersant said that the French firm may agree to reduce its stake in line with the investment volume in favor of the other shareholders.

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