Russia's Arctic LNG 2 plant resumes operation 'slowly'

Russia's Arctic LNG 2 plant, under U.S.-sanctions, has resumed natural gas processing at a low rate this month, sources and satellite images showed on Tuesday, though it has yet to deliver its first cargo to the buyers.

The Arctic LNG 2 project, 60%-owned by Russia's Novatek, had been set to become one of Russia's largest LNG plants with an eventual output of 19.8 million metric tons per year, but prospects have been clouded by Western sanctions over Russia's war with Ukraine and it has struggled to sell the sea-borne gas.

A source had said that Arctic LNG 2's first production train had been shut since October 11, as the project was not able to sell a cargo over the sanctions.

Two industry sources told Reuters on Tuesday that the plant has gradually resumed processing.

One of the sources said the production has been going at a slow pace as Russia still expected U.S. President Donald Trump to clarify his stance over the sanctions.

Novatek has working with lobbyists in an attempt to rebuild U.S. relations after Washington imposed sanctions on the Arctic LNG 2 project, according to sources.

Russia's officials and businessmen have been cautiously optimistic about the prospects of sanctions easing after Trump took office for the second time in January and his perceived warming up towards President Vladimir Putin.

Satellite images provided by Planet Lab, show gas flaring at the Arctic LNG 2 on March 30, while there was no flaring on a March 22 picture.

Novatek began liquefied natural gas (LNG) production at Arctic LNG 2's first train in December 2023, but has been behind schedule in supplying cargoes of super-cooled gas due to shortages of ice-class gas carriers and the sanctions.

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