Novatek no longer considering changing Arctic LNG 2 timeframes

Russia's Novatek is not planning to change its planned timeframes for developing the 19.8 million mt Arctic LNG 2 project, CEO Leonid Mikhelson said May 19, during the New Horizons conference.

"There are significant difficulties today with the introduction of sanctions ... we are managing to overcome these difficulties, we are not currently changing commissioning plan timeframes," Mikhelson said, according to the Prime news agency.

In mid-April Mikhelson said that the company was considering some changes to the project's development plans after sanctions were imposed on Russia in response to its invasion of Ukraine.

The company plans to launch the first train in 2023. Mikhelson said May 19 that the company has almost completed construction of the first train of the project, but sanctions are causing some complications.

Sanctions are raising concerns over the viability of all new Russian energy projects, with Western producers announcing plans to exit the Russian market and some traditional key buyers turning away from Russian imports. Energy producers also face potential issues securing financing, equipment and technology.

Arctic LNG 2 is Novatek's second large-capacity liquefied natural gas production project after its 17.4 million mt/year Yamal LNG project.