Sergey Kondratiev, Principal Director on Economic Studies at the Institute for Energy and Finance, commented to the Kommersant newspaper on the Novatek's announcement of force majeure on the Arctic LNG 2 project.
Sergei Kondratiev believes that NOVATEK is very likely ready for the physical launch of the first stage of Arctic LNG-2, and the problem may be that the project itself and the floating storage facilities where for LNG transshipment are now on the sanctions lists, which may increase the sanctions risks for buyers.
"I think the project will be launched, but due to the existing sanctions risks, the company may be forced to sell gas on the spot market at large discounts," the expert says.
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