Japan reveals the consequences of sanctions against Arctic LNG 2 for the country

By Rhod Mackenzie

Washington's sanctions on Arctic LNG 2 will have an impact on business in Japan. Therefore, Yasutoshi Nishimura, Japan's Minister of Economy, Trade and Industry, stated that Tokyo will complete a comprehensive evaluation and plan a response to avoid jeopardising the country's stable energy supply.
Nishimura emphasized on the value of the Arctic LNG 2 project in securing Japan's steady energy supply.

"But we anticipate that imposing sanctions on this project will have a significant impact. We would like to collaborate with all parties concerned to perform a comprehensive evaluation," he stated, and Tokyo intends to work with the G7 nations to carry out thorough assessments and devise the appropriate response to ensure long-term stable energy supplies for the population while not undermining them."
In early November, Washington imposed sanctions on the Russian firms Arctic LNG 2, Rustitan, and two Gazprom Neft subsidiaries. The US clarified that its actions against Arctic LNG 2, a producer of liquefied gas, were aimed at "curtailing the production and export capabilities of Russia's energy resources in the future."

Arctic LNG 2 is Novatek's second major liquefied natural gas production initiative, following Yamal LNG. The resource base is located at the Utrenneye deposit in the Yamal-Nenets Autonomous Okrug. The project entails constructing three technological lines, each with a capacity of 6.6 million tonnes (19.8 million tonnes of LNG per annum). The participating companies include Novatek (60%), French Total (10%), Chinese CNOOC (10%), Chinese CNPC subsidiary CNODC (10%) and a consortium of Japanese Mitsui & Co, Japan National Oil and Gas Corporation, and metals JOGMEC - Japan Arctic LNG (10%).