Russia’s Sanctioned Arctic LNG Plant Boosts Output to New Record

By Bloomberg News (Bloomberg) — Russia’s sanctioned Arctic LNG 2 project boosted gas output to record levels this month as the export facility keeps loading cargoes that have struggled to find buyers. 

Natural gas production at the Novatek PJSC-led plant averaged nearly 15 million cubic meters a day during most of August, according to a person with knowledge of the matter. That likely also translated to higher output of LNG — gas that has been cooled to a liquid form for ease of transport. 

The facility, located above the Arctic circle, is pivotal for Russia’s plans to triple LNG production by 2030 and tap new gas markets after a sharp decline in pipeline exports to major buyers in Europe.

While those ambitions were squeezed by international sanctions after the Kremlin’s full-scale invasion of Ukraine, five tankers — also subject to restrictions — appear to have loaded LNG cargoes since June, with most of them heading now toward Asia. 

It remains unclear where the vessels will unload and whether the cargoes have found foreign buyers, but suggests Russia may be finding ways around the sanctions. 

The Arctic LNG 2 project ramped up daily gas production to more than 25 million cubic meters a day on Aug. 25 and Aug. 26, the person said, who spoke on the condition of anonymity as the information isn’t public. 

The latest hike may signal plans to continue loading LNG. In December 2023, when it was launched, the plant pumped an average of 13.7 million cubic meters of gas a day.

The La Perouse LNG vessel is currently heading in the direction of the facility, according to ship-tracking data compiled by Bloomberg. If loaded, that would be the sixth export this year from Arctic LNG 2, with no clear signs of the other five cargoes finding buyers. 

The Christophe de Margerie tanker remains loaded near the Koryak floating storage unit, also sanctioned by the US, in Russia’s Far East. The Voskhod and Zarya vessels are sailing in the Bering Sea, while the Buran and Iris ships are heading east across the Northern Sea Route.

Arctic LNG 2 and Novatek, the project’s largest shareholder, didn’t immediately respond to Bloomberg requests for comments. 

© 2025 Bloomberg L.P.

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