(Bloomberg) — Russian gas producer Novatek PJSC appears to be pushing ahead with an expansion project for its Arctic LNG 2 plant despite Western energy sanctions.
A small fleet of tugboats towing a second production train approached the site of the plant on Saturday, according to vessel tracking data. The platform left the construction site near Murmansk on July 25 and began a three-week journey through the eastern Arctic to reach the production area, where the first train is already in operation, vessel tracking data showed.
Arctic LNG 2 is a key pillar of Russia’s strategy to expand the liquefied natural gas market. This growing global market could help Moscow make up for lower gas supplies following its invasion of Ukraine. The US imposed sanctions on the plant last year in an effort to cut energy revenues that fuel the Kremlin’s war machine.
The restrictions prevented the delivery of ice tankers needed to export the LNG, delaying shipments for months. However, satellite images show that two ships recently left the facility, suggesting that Russia has managed to circumvent the restrictions by using a shadow fleet.
The second platform appears to be identical to the first. It is about 330 meters long and about 150 meters wide, as shown by satellite images from the Copernicus Data Space Ecosystem. The first train, delivered to the production site a year ago, weighed around 640,000 tons and was the heaviest object ever moved in the history of the global LNG industry, according to Novatek.
It is unclear when production at the new plant might begin, but the first train took more than four months to come online after arriving at the site on the Gydan Peninsula a year ago. A similar timeline would mean LNG could be flowing from the new plant in December, in line with Novatek’s target of commissioning in 2024.
According to Kpler Ltd., exports from the plant could only begin next summer, when ice-class tankers are no longer needed due to warmer weather.
“Kpler Insight expects the second production train to not begin transporting cargo until summer 2025, when the Northern Sea Route is reopened and conventional ships can be used for loading again,” said Laura Page, an analyst at the research firm.
Novatek did not immediately respond to a request for comment on Saturday.
Arctic LNG 2 was originally designed for three production lines with a total capacity of 19.8 million tonnes per year. But sanctions have effectively put the third plant on hold, according to TotalEnergies SE, which owns a 10 percent stake in the project.
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