By Stephen Stapczynski (Bloomberg) —
Russia’s Arctic liquefied natural gas plant appears to have flared fuel last week, satellite images show, a move that could indicate the restart of a sanctioned export facility that has effectively been shuttered since last October.
Snapshots taken by the European Sentinel 2 satellite show the Arctic LNG 2 facility flaring gas on March 30. An earlier picture captured on March 22 did not show a flame or any indication of activity.
Flaring does not automatically mean a full resumption of activity and could also suggest maintenance — but there have been other signs that the Arctic LNG 2 project is eyeing an easing of US sanctions. In February, Novatek PJSC, the largest shareholder of the project, urged Indian buyers to take discounted cargoes while they could and before restrictions were lifted by Washington.
Images taken throughout February showed a small flare, suggesting that the facility may have produced some LNG.
The most recent image, however, shows that the surrounding water remains frozen, which means traditional vessels cannot navigate to the port to export the fuel. Vessels typically used to circumvent restrictions against Arctic LNG 2 aren’t designed to navigate thick ice, and instead picked up shipments during the summer months.
The Arctic LNG 2 facility shut large-scale production last year as curbs imposed by Washington kept overseas buyers away and ice build up began to make it difficult for ships to arrive.
Novatek and Arctic LNG 2 did not immediately respond to requests for comment on the images and a potential restart.
Separately, the East Energy, used to pick up fuel from Arctic LNG 2 last year, is nearing Shanghai, according to ship-tracking data compiled by Bloomberg. If the vessel — which was also sanctioned by the US — docks in China, it will be the first time one of Russia’s dark fleet LNG tankers from the Arctic project lands at a foreign port.
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