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Novatek of Russia shuts down commercial operations of its sole operational train at Arctic LNG 2

Russia's Novatek earlier this month shut down commercial operations at the first and only operational train of its Arctic LNG 2 project with no plans to restart it during winter.

"The train was shutdown on Oct. 11. No plans to restart during winter," Reuters reported quoting sources.

Novatek did not immediately respond to a Reuters request for comment.

The Arctic LNG 2 project, 60% owned by Russia's Novatek NVTK.MM, is subject to Western sanctions over Russia's conflict with Ukraine.

The plant has loaded eight LNG cargoes between Aug. 1 and Oct. 7, according to Kpler's data, but failed to find buyers.

"The shutdown of the plant is ultimately a reflection of a lack of appetite from buyers and a lack of Arc7 ice-class vessels needed to lift LNG during the winter months," said Laura Page, manager of gas and LNG insight at Kpler.

"The US has succeeded in its efforts to kill the project, for now. Kpler Insight expects the plant to remain shut until at least next summer, when Novatek will likely re-assess appetite from potential buyers," she added.

editor@lngworldwide.com