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(Bloomberg) — Russia’s sanctioned Arctic LNG 2 plant has started curbing gas production after reaching records in October, as the buildup of winter ice makes exports more challenging.
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Natural gas output at the Novatek PJSC-led facility dropped below 10 million cubic meters a day earlier this week, according to a person with knowledge of the matter. That compares with a daily average of 19.5 million cubic meters for most of October, which was the highest since Arctic LNG 2 started producing super-chilled fuel in late 2023, the person said on condition of anonymity because the data aren’t public.
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Arctic LNG 2 and Novatek, the project’s largest shareholder, didn’t immediately respond to Bloomberg requests for comment.
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The facility located above the Arctic Circle is key for Russia’s ambition to triple liquefied natural gas production by the end of the decade. That plan is threatened by international sanctions after the Kremlin’s invasion of Ukraine, yet China’s decision to take more fuel from the blacklisted plant could help revive the goal.
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Arctic LNG 2 has been supplying its sanctioned cargoes to the Asian nation since late August. Over that period, the facility has loaded more than a dozen shipments of super-chilled gas. The gas-output hike seen in October and early November would have enabled greater production of LNG and may have signaled that the plant was maximizing exports before winter navigation challenges.
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As ice thickens across the Northern Sea Route, navigation to and from the plant on the Gydan Peninsula is set to become more complicated. Starting Friday, only vessels of Ice3 class or higher, with strengthened hulls, are able to navigate the Arctic waters without an icebreaker escort. Ice2 ships are allowed with an icebreaker escort, according to Russian regulations.
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The bulk of tankers servicing Arctic LNG 2 aren’t ice-class, and due to western energy sanctions the facility cannot expand its fleet.
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