FSUOGM: Novatek shares tumble after reports of force majeure delivery problems from Arctic LNG-2 in 2024

Russia’s biggest LNG producer Novatek has warned customers that it will not be able to meet all its delivery obligations in 2024 due to force majeure caused by sanctions imposed on the development of its Arctic LNG-2 project by the US, Bloomberg reports.

The Arctic LNG-2 project involves the construction of three gas liquefaction lines with a total capacity of 19.8mn tonnes per year (tpy) based on the Utrenneye field on the Gydan Peninsula. The first line was planned to be launched before the end of this year, with shipments to begin in the first quarter of next year. Through the project Russia wanted to triple its LNG capacity by the end of the decade.

Novatek has 60% of Arctic LNG-2. Other participants – French TotalEnergies, China's CNPC and CNOOC, as well as the Japanese consortium of Mitsui and JOGMEC – each own 10%.

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