Novatek Halts Production of Arctic LNG-2 Due to Sanctions

The Russian gas company Novatek has suspended production at its Arctic LNG-2 project due to sanctions and a shortage of tankers, Reuters reports, citing two sources. One of the sources noted that construction work on-site is still ongoing.

According to Reuters, Novatek's main issue in production has been the lack of tankers for transporting liquefied natural gas (LNG). In February, it was reported that the company was unable to receive three gas carriers from South Korean shipbuilder Hanwha Ocean because their customers are structures of Sovcomflot, which have been subjected to U.S. sanctions. Additionally, the delivery of three more tankers has been delayed due to a shortage of labor.