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“Due to increasing instances of misinformation being published in the media affecting the operations and the reputation of Novatek, please be informed that Novatek is one of the participants in Arctic LNG 2 LLC, while employees of the company are not employed by the project,” the company said in a statement on Tuesday.
Novatek said all of the project’s activities, including operational and commercial activities, are “controlled solely by the management of Arctic LNG 2.”
“The allegations made in the media, namely that the company is involved in the establishment and management of a shadow fleet, as well as in loading products from the Arctic LNG 2 project, are untrue and do not stand up to facts,” the company said.
“Novatek will take all steps to thwart publication and dissemination of misinformation intended to cause damage to the company, and will protect its interests in court,” it said.
Sanctions
The US government recently imposed sanctions on two more LNG carriers saying they are tied to the Novatek-operated Arctic LNG 2 project.
The Department of State said in a statement it is targeting two entities and two vessels connected to attempts to export LNG from the US-sanctioned Arctic LNG 2 project.
According to the statement, the Department is sanctioning Gotik Energy Shipping Co (Gotik) and Plio Energy Cargo Shipping OPC PVT LTD (Plio Energy).
Gotik and Plio Energy are the registered owner and commercial manager, respectively, of the LNG carrier New Energy, the Department said.
The 2007-built LNG carrier has a capacity of 150,000 cbm.
“LNG/C New Energy used deceptive shipping practices, including shutting off its automatic identification system, to load cargo from the US-sanctioned Arctic LNG 2 project via a ship-to-ship transfer on August 25, 2024, with LNG/C Pioneer, a vessel blocked by the United States on August 23, 2024,” it said.
“We are also identifying one additional vessel managed and operated by Plio Energy, LNG/C Mulan, as property in which Plio Energy has an interest,” the Department said.
This 2024-built vessel has a capacity of 79,800 cbm.
Last month, the US government has imposed sanctions on seven LNG carriers saying they are tied to the Novatek-operated Arctic LNG 2 and Yamal LNG projects.
According to the US Treasury and the Department of State, the LNG carriers include Asya Energy, Everest Energy, Pioneer, North Air, North Mountain, North Sky, and North Way.
With these two vessels, this now puts the total to nine LNG carriers.
Arctic LNG 2
Novatek recently delivered the second gravity-based structure platform from its yard near Murmansk to the site of the Arctic LNG 2 project located on the Gydan peninsula, according to reports.
The second GBS left the Belokamenka yard under tow on July 26, and the installation of the unit at the Arctic LNG 2 site was expected to start in mid-August, Kommersant said in a previous report.
Novatek completed the second GBS despite sanctions by the US and the EU related to the Arctic LNG 2 project.
The first GBS left the Belokamenka yard in July last year and Novatek completed the installation on the underbase foundation on the seabed at the Utrenniy terminal in August.
The first and second GBS each have a capacity of about 6.6 mtpa, while the Arctic LNG 2 project also previously included the construction of the third GBS.
Novatek is the LNG project’s operator with a 60 percent stake, France’s TotalEnergies owns 10 percent, while CNPC and CNOOC of China have 10 percent, each.
Japan Arctic LNG, a consortium of Mitsui & Co and Jogmec, owns a 10 percent stake in the project as well.
In January, TotalEnergies initiated a force majeure process on the Arctic LNG 2 project in Russia due to sanctions.
In March 2022, TotalEnergies said it would no longer provide capital and book proven reserves for the Arctic LNG 2 project due to the uncertainty created by the technological and financial sanctions on the ability to carry out the development.
After that, TotalEnergies wrote down its 19.4 percent stake in Novatek and withdrew the representatives of the company from the board of Novatek.