Foreign shareholders freeze participation in Russia's Arctic LNG 2
Business
Foreign shareholders freeze participation in Russia's Arctic LNG 2
MOSCOW (Reuters) - Foreign shareholders suspended participation in the Arctic LNG 2 project due to sanctions, renouncing their responsibilities for financing and for offtake contracts for the new Russian liquefied natural gas (LNG) plant, the daily Kommersant reported on Monday.
The project, seen as a key element in Russia's drive to boost its LNG global market share to 20% by 2030 from 8%, was already facing difficulties due to US sanctions over the conflict in Ukraine and a lack of gas carriers.
China's state oil majors CNOOC Ltd (0883.HK) and China National Petroleum Corp (CNPC) each have a 10% stake in the project, which is controlled by Novatek (NVTK.MM), Russia's largest LNG producer and owner of a 60% stake in the project.
Kommersant, citing unnamed sources in the Russian government, said both Chinese companies, together with France's TotalEnergies (TTEF.PA) and a consortium of Japan's Mitsui and Co (8031.T) and JOGMEC - which also have a 10% stake each - declared force majeure on participation in the project.
