Arctic LNG 2: How China Revived Russia’s Frozen Gas

Arctic LNG 2, Russia’s flagship liquefied natural gas development on the Gydan Peninsula (the West Siberian Coast in the Kara Sea), was designed to produce nearly 20 million tons of LNG annually (provided all three planned processing units are in operation), primarily for export to Asian markets. On top of this, Novatek (the project’s operator) has taken on the task of transporting LNG to the Beihai terminal using its own sanctioned tankers, shouldering the freight, insurance, and sanctions risks itself. The difference is clear in practice: the Buran’s direct voyage from Arctic LNG 2 to Beihai via the NSR took just 24 days, while the La Perouse, which departed Gydan on August 27 and is taking the longer route around the Cape of Good Hope coast, will take almost a month more.

Author: Natalia Katona

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