Sanctions are sinking Russia’s flagship gas project

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Subscribe to enjoy similar stories. The West’s economic weapons are missing their target. Last month Russia exported near-record volumes of oil, at a decent price.

But there is one exception. After shutting its main gas pipeline to Europe in 2022, Russia had hoped that Arctic LNG 2, an ultra-modern export facility, would open big new markets. Yet last month the plant suspended operations until next summer, for want of ships and buyers.

Sanctions are nipping it in the bud. In 2021 piped fuel to Europe accounted for 69% of Russia’s 200bn cubic metres (bcm) of total gas exports. Because redirecting pipelines is hard, the future of Russia’s gas industry now hinges on its ability to produce much more gas in liquid form (LNG) and ship it to alternative buyers.

Arctic LNG 2 is vital to that mission. The project, comprising three “trains" projected to liquefy 27 bcm a year, is big in itself. It also pioneers Arctic-proof technologies—such as floating concrete platforms as big as eight football fields—and installation techniques that can be deployed on a large scale.

(Its parts are pre-assembled 2,000km away before being clicked together, Lego-style, in Siberia.) It is therefore the prototype for many more potential Russian LNG terminals, says Tatiana Mitrova, formerly of the Russian Academy of Science. Russia aims to produce 100m tonnes of LNG a year—equivalent to 142 bcm when regassed—by 2030. To prevent this, Western countries have tried to deprive Arctic LNG 2 of key technology, tankers and clients.