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Source: Arctic LNG 2 begins production at the second train.

Sources familiar with the situation said that despite not being able to sell any liquefied gas from its first train, Russia's Arctic LNG 2 facility, which is under U.S. sanction, had started production on its second train.

Novatek, a Russian energy company, declined to comment.

The plant, located on the Gydan Peninsula that protrudes into the Kara Sea, was set to be one of Russia's biggest LNG plants. It would have a production of 19,8 million metric tonnes per year in three trains.

Novatek started production at Arctic LNG on December 20, 2023. However, it is behind schedule with the delivery of cargoes due to a shortage of ice class gas carriers and Western Sanctions over Russia's conflict with Ukraine.

Sources claim that Arctic LNG 2's production train 1 has been closed since October 11 due to sanctions which have prevented any sales.

Satellite images suggest that Arctic LNG 2 restarted production at the end March.

Russia's businessmen and officials have shown cautious optimism about the prospects for sanctions to ease after Donald Trump was elected president of the United States in January. This could lead to closer relations with Vladimir Putin.

Novatek is said to have been lobbying with two separate sources to try and rebuild U.S.-Russian relations. (Reporting and writing by Marwa Rashed; editing and proofreading by Barbara Lewis).

(source: Reuters)