Sanctioned Russian Arctic LNG Project Awakens After Winter With Gas Flaring Visible at Both Production Lines

By Malte Humpert (gCaptain) – Russia has apparently turned the lights back on at its sanctioned Arctic LNG 2 plant. Images taken by the European Sentinel 2 satellite reveal flaring at both production lines, Train 1 and Train 2, as well as the adjacent main flare. 

Gas flaring at one of the production lines was first detected several weeks ago. In recent days the main flare grew substantially and a smaller flame became visible at the thus-far uncommissioned Train 2. 

Arctic LNG 2 began operations in August 2024 with the first shadow fleet LNG carrier, Pioneer, pulling up alongside Train 1. Over the next two and a half months the project managed to ship out eight cargoes, though none of them have found a buyer due to concerns over U.S. sanctions. Around one million tonnes of LNG remain afloat aboard several LNGC as well as two floating storage barges in Europe and the Far East. More than six months later losses from boil-off have likely reached 15-20 percent. 

In October, Novatek PJSC, the largest shareholder of the project, decided to temporarily mothball the plant as it found itself unable to market its product to potential buyers in China and as thick winter sea ice made a return. Efforts to attract buyers in India and to lobby the EU and the U.S. for sanctions relief have thus far also not borne fruit.

While the company recently indicated that it did not expect a material change in the sanctions environment for the upcoming summer shipping season, it nonetheless appears to work towards full commissioning of Train 1 and initial start-up of Train 2. During the summer of 2024 the first production line reportedly ran at only half capacity.

Days before winter closed the Northern Sea Route for shipping in November 2024 three heavy lift vessels delivered a powerful generator set and substation from China to drive the second production line. That power plant has now been installed and appears to be supporting Train 2 start-up as indicated by flaring activity.

At the Utrenney terminal, as the port at Arctic LNG 2 is formally known, several vessels continue to maintain a shipping channel into the waters of Ob Bay. Satellite images and AIS data show at least two icebreakers working at the terminal in concert with a number of tugs. Such activity is not necessarily indicative of imminent LNGC ship traffic. Throughout winter a number of general cargo vessels have called at the port. 

For now there are no indications of any gas tankers heading in the direction of Arctic LNG 2, but the plant appears ready to take advantage of any change in the Western sanctions regime.

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