Russia Continues Working on Sanctioned Arctic LNG 2 With Wison Power Modules Installation and Gas Flaring
Arctic LNG 2 in the Russian Arctic. (Source: Novatek)
New satellite images reveal the progress Novatek has made at the Arctic LNG 2 project. Power units delivered by Chinese company Wison appear installed and recent gas flaring suggest a temporary re-start or test start-up of the facility.
Russia’s liquefied natural gas company Novatek presses on with its sanctioned flagship project. In recent days satellite images confirm two noteworthy developments at the project high in the Russian Arctic.
Power plant modules delivered to the plant in November 2024 from Chinese manufacturer Wison have been unloaded and installed adjacent to the production lines during the winter months.
The units will provide external power supply to the second, and in the future third, train of the plant.
Sanctioned
The redesign became necessary following the departure from Russia of American supplier Baker Hughes before delivering all required turbines.
Chinese firm Wison provided the replacement power plant in violation of sanctions during an elaborate logistics scheme uncovered by HNN last year.
The U.S. government subsequently sanctioned the company’s Zhoushan unit for the illegal delivery.
The seeming installation of the power modules throughout the past few months shows that Novatek continues pushing ahead with the completion of the second production line.
The first production line began operation last August but the project struggled to find buyers for its sanctioned product. The plant was subsequently mothballed in October 2024 after shipping out just eight cargos.
Satellite images from March 30 showing gas flaring and the installation of the Wison power modules. (Source: Sentinel 2)
Satellite images show progress at the site
However, images show recent flaring activity at the facility possibly indicating at least a temporary re-start of production of the first train or supporting a test startup of the second production line.
But the activity may be short-lived. Onboard storage capacity in tanks below the production facility is limited.
It is unlikely that the project’s majority owner, Novatek, would attempt to restart full production at the height of winter sea ice. Especially since it continues to lack access to high ice-class LNG carriers.
Towards completion
Several vessels completed by Hanwha in South Korea remain in sanctions limbo and carriers of the same type at the Russian Zvezda yard continue to face delays.
Nonetheless, the recent flaring activity and installation of the power units are indicative of Novatek’s resolve to continue working towards completion of its flagship project.
While uncertainty continues to evolve around the pace of the Ukraine-Russia peace process initiated by the U.S.’ Trump administration, it is likely that Arctic LNG 2 will feature prominently in any discussions over eventual sanctions relief.
Novatek is clearly positioning the Arctic LNG 2 project in anticipation of a possible future policy shift.
