Russia’s Arctic LNG 2 Project Resumes Operations Despite Sanctions and Ice Blockades
Russia’s Arctic LNG 2 plant, a cornerstone of the Kremlin’s ambitions to dominate global liquefied natural gas (LNG) exports, has quietly initiated operations at its second production line, defying ongoing Western sanctions and logistical challenges posed by harsh Arctic conditions.
The Gaze reports on this with reference to Bloomberg.
According to sources familiar with the project, Train 2 of the facility, owned primarily by Novatek PJSC, has begun producing LNG, marking the first output from the line amid an increasingly complex geopolitical and operational environment. The annual capacity of Train 2 is estimated at 6.6 million tons.
The development comes after the plant was forced to halt large-scale operations in October 2024 due to a combination of sanctions that restricted access to foreign technology and buyers, as well as seasonal ice buildup that blocked shipping routes. While a few cargoes were sent out last summer, none reportedly secured international buyers.
Recent satellite imagery analyzed by Bloomberg and obtained via the European Sentinel 2 satellite reveals renewed gas flaring at the site, first observed on March 30, suggesting a potential restart. Although flaring may also indicate maintenance or testing, further indicators suggest that the project is inching toward limited production.
Despite these signs of life, harsh Arctic conditions persist. The waters surrounding the facility remain frozen, rendering them impassable for conventional LNG tankers. Only specialized vessels, often deployed during summer months, are capable of navigating the ice-clogged route.
The U.S. and its allies imposed sweeping sanctions on Russia’s energy sector in response to its full-scale invasion of Ukraine. These restrictions have severely hampered Russia’s ability to complete and operate high-tech energy infrastructure, particularly projects like Arctic LNG 2 that rely on Western expertise and equipment.
Novatek has declined to comment on the latest developments. However, earlier this year the company urged Indian buyers to purchase discounted LNG cargoes before Washington tightens enforcement – a move seen as a signal that Russia is seeking to exploit grey market channels to sustain exports.
Despite Western attempts to isolate Russia’s energy sector, the Kremlin continues to explore alternative trade routes, buyers, and domestic technological solutions to keep strategic projects like Arctic LNG 2 afloat.
As The Gaze reported earlier, Chinese President Xi Jinping and Russian President Vladimir Putin are set to revisit negotiations over the long-stalled Power of Siberia 2 gas pipeline during their high-level talks at the beginning of May.