Sanctions against LNG: what is the benefit for Europe and what awaits NOVATEK

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to RBC on the meaning and consequences of the 14th package of EU sanctions in terms of measures against Russian LNG exports.

Alexey Belogoryev believes that buyers of Russian LNG are unlikely to declare force majeure on long-term contracts.

"Moreover, as far as I understand, part of the transshipment was used for spot sales. Most likely, they will redistribute supplies within their global portfolios through swaps. The more LNG they can sell in Europe itself, the less important this measure will be for them," the expert concludes.

"In principle, it is not even necessary to build or rent a floating gas storage facility for transshipment, technically it is possible to carry out transshipment directly from ship to ship — an equipped anchorage is enough for this. Therefore, theoretically, it can be moved anywhere, including to North Africa. But the closer the transshipment point is to the Arctic plants, the more flights to it in a year will be able to make gas carriers of the Arc7 ice class. Therefore, if we transfer transshipment from Belgium and France, then to the Barents Sea," the expert says.