Arctic LNG 2 reaches record production and exports amid sanctions

Novatek’s Arctic LNG 2 project has reached record production and export levels despite Western sanctions. During July and August, natural gas production on the Gidan Peninsula exceeded 27 million cubic meters per day, nearly doubling the average for August 2025. Monthly LNG exports also hit record highs, surpassing 500,000 metric tons.

To bypass sanctions and compensate for the loss of the European market, Russia is redirecting supplies toward Asia, with China serving as the primary buyer. The project is utilizing a shadow fleet of at least 20 vessels to facilitate these shipments. While this shift helps maintain volume, logistics costs are expected to at least double.

Concurrently, the Kremlin has criticized European nations for shunning Russian gas, claiming that high energy costs are a consequence of this decision. As European gas prices have surged due to geopolitical tensions, Kremlin spokesman Dmitry Peskov suggested that Russian piped or liquefied natural gas could have remained a cheaper option for the continent.