Baker Hughes withdraws from Russian LNG projects – Kommersant

The American oil company Baker Hughes has stopped serving all Russian liquefied natural gas projects, jeopardizing the launch of new plants and the continued operation of existing projects, the Kommersant daily reported on Thursday.

Baker Hughes reportedly recalled service engineers from Gazprom’s Sakhalin-2 and Novatek’s Yamal LNG projects, as well as project engineers and equipment shipments to Novatek’s Arctic LNG-2 still under construction.

“This calls into question the continued operation and commissioning of foreign equipment, and also makes it impossible to provide spare parts for its repairs,” Kommersant wrote, citing Baker Hughes’ anonymous Russian contractors.

Baker Hughes, who suspended Russian business interests in March following Moscow’s invasion of Ukraine, did not confirm the report.

Novatek said in March it would suspend development of its liquefied natural gas projects in the Arctic after France’s Total halted all new investment in Russia.

Last month, Novatek CEO Leonid Mikhelson said plans were still underway to complete the first Arctic LNG-2 train in 2023, with the capacity to deliver 6.6 million tonnes of LNG.

Neither Novatek nor Mikhelson are under American or European sanctions.

The EU’s fifth sanctions package bans the delivery of LNG technologies and products, jeopardizing Russia’s goal of reaching 20% ​​of the global LNG market by 2035.

Russia’s oil and gas industry is highly dependent on foreign technology. Past energy projects have highlighted the inability of Russian industry to build its own service sector despite years of trying.

Mikhelson said about half of Arctic LNG-2 equipment is produced locally, with the rest expected to be localized within the next two to three years.

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