Site icon businessstandardsng.com

Baker Hughs Plans To Halt Services For LNG Projects In Arctics Russia

Several of Russia’s main energy projects in the Arctic face more troubles as the U.S company reportedly has decided to halt all engineering services to Russian LNG companies. According to newspaper Kommersant, Baker Hughes will also stop deliveries of equipment to Russia.

Baker Hughes plays a key role in several of the new natural gas projects that over the past years have been developed in the Russian Arctic. Without the services and equipment provided by the company, projects like the Yamal LNG and the Arctic LNG 2 will soon run into trouble.

According to Kommersant, Novatek will not be able to get needed spare parts to the Yamal LNG, and the construction of the first train of the Arctic LNG 2 might not be completed. The former project was launched in 2017 and now produces about 20 million tons of LNG per year. The latter is to be launched in 2023 and by 2026 produce 19,8 million tons.

People associated with the Russian natural gas industry now question the future of all projects dependent of foreign equipment.

Novatek owner and CEO Leonid Mikhelson has previously stated that operations are “complicated” by international sanctions and that he no longer can confirm formerly adopted timelines for projects such as the Arctic LNG 2.

 

Exit mobile version