Gas output too low to sustain new LNG production at Russian project

Who would have guessed? Anyone looking at the map where Arctic LNG is situated would be hard-pressed to ask what doing anything in those conditions might actually cost. More than 15 years ago there was a long article in the German Stern magazine detailing how producing oil and gas on the Yamal peninsula is the mother of all nightmares and way too expensive for the market to bear. Might it be that Novatek speculated on sky-high LNG prices forever to run their scheme? If they did, they were in good company. The world is riddled with hyper-expensive LNG projects mostly in the Asia Pacific region but those are being dealt with as is. In today’s Russia, if Arctic LNG powers down for once, it likely ceases production forever. 

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