Russia's Arctic LNG 2 gas output slashed in May, source says
MOSCOW, July 16 (Reuters) - Russia's sanctions-hit Arctic LNG 2 project, which started production in December but has yet to begin exports, slashed its natural gas output in May, a source familiar with the data told Reuters.
The source said that the liquefied natural gas project, located in the Gydan peninsula in the Arctic, extracted around 55 million cubic metres (mcm) of natural gas in May, down from about 215 mcm in April.
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It is the lowest monthly production for at least the past six months, the source said.
Novatek, the operator of the project with a 60% stake, did not reply to a request for comment.
Vedomosti daily reported in April that Novatek, Russia's largest producer of LNG, cut gas production at the project to 83 million mcm in February, a fraction of gas output at 425 mcm in December and 250 mcm in January.
The project had planned to start commercial deliveries of LNG in the first quarter of this year but its inclusion last year in Western sanctions over Russia's conflict in Ukraine prompted foreign shareholders to freeze participation and Novatek to issue a force majeure.
It has since faced problems securing specialist gas carriers to transport the gas, which is being liquefied under temperatures of minus 163 degrees Celsius (minus 261.4 degrees Fahrenheit). A number of orders for tankers, including in South Korea, were cancelled due to sanctions.
Other shareholders in Arctic LNG 2 are France's TotalEnergies, China's CNPC and CNOOC, and Japan Arctic LNG - a consortium of Mitsui & Co, Ltd. and JOGMEC - each holding a 10% stake.
(Reporting by Reuters; Editing by Emelia Sithole-Matarise)