By Bloomberg News (Bloomberg) — Russia’s sanctioned Arctic LNG 2 plant increased gas production to record levels in September as its cargoes appear to find buyers in China. 

NG Natural gas output at the Novatek PJSC-led facility averaged 17.9 million cubic meters a day during most of September, according to a person with knowledge of the matter. That’s the highest daily average since the facility was launched in December 2023 and a 14% increase from August levels, the previous high.

Increased natural gas output likely also meant more production of LNG, as the plant was able to load cargoes and ship them to the Beihai import terminal in China. Since late August, seven tankers carrying liquefied natural gas from the sanctioned facility stopped at the state-run terminal, with another vessel nearing southern China, according to ship-tracking data compiled by Bloomberg. 

The facility located above the Arctic circle is key for Russia’s ambition to triple LNG production by the end of the decade. While those plans were squeezed by international restrictions after the Kremlin’s invasion of Ukraine, China’s decision to take more Russian gas amid a confrontation with the US could revive those goals. 

In the near term, as the weather turns colder, Arctic LNG 2 may struggle to keep production at current levels as a shortage of ice-class tankers could limit eastbound navigation through Russia’s Northern Sea Route. Last year, the facility stopped liquefying natural gas in October and reduced production at its fields to nearly zero the following month. 

Still, the trend marks a turnaround, with sanctioned cargoes from Arctic LNG 2 struggling to find buyers for more than 1 1/2 years. The first vessel carrying the fuel docked in China just ahead of President Vladimir Putin’s September visit to Beijing, which also led to deals for pipeline gas. Russia aims to further boost LNG flows to China, including from Arctic LNG 2, Energy Minister Sergei Tsivilev told a Russian magazine. 

Arctic LNG 2 and Novatek, the project’s largest shareholder, didn’t immediately respond to Bloomberg requests for comments. 

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