Published by Wanda Rich
Posted on April 25, 2022
2 min readLast updated: February 7, 2026
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By Valentine Baldassari and Diana Mandia
(Reuters) – French oil and gas services provider Technip Energies expects the latest European sanctions against Russia to have a more direct impact on the execution of liquefied natural gas (LNG) project Arctic LNG 2, it said on Monday, adding it was ramping up activity outside of Russia this year.
The European Union’s fifth package of sanctions against Russia following its invasion of Ukraine – which Moscow calls “a special military operation” – bars the delivery of goods and technologies required for gas liquefaction.
“These will naturally have a more direct impact on the future execution of the project”, Technip Energies’ Chief Executive Officer Arnaud Pieton said on a call, adding the sanctions could make the execution of the LNG project in the Russian Arctic “more complicated, maybe even highly complicated”.
The Arctic LNG 2 plant, located on the Gydan peninsula, was expected to start operations at its first of three lines in 2023, but this plan has been under threat following a raft of Western sanctions.
According to Pieton, sanctions could significantly reduce the involvement of Technip Energies in the project beyond the second quarter of this year.
Project delivery in the first quarter contributed 1.3 billion euros ($1.4 billion) in revenue, including 445.4 million euros from Arctic LNG 2.
Technip Energies, which specialises in engineering and technology for the energy industry, said in March it was renouncing new business opportunities in Russia and excluded ongoing Russian projects from its guidance.
Technip Energies also said rising demand for liquefied natural gas as Western buyers steer clear of Russian fuel was set to continue as the war had driven “an exceptional change” in the market outlook for LNG.
“The vast majority of Europe’s gas demand will, we think, have to come from LNG”, Pieton said, citing Technip Energies’ variety of low-carbon LNG solutions.
The group posted adjusted recurring earnings before interest and tax (EBIT) of 107.3 million euros, beating a company-supplied consensus analyst forecast of 100.9 million euros.
($1 = 0.9282 euros)
(Reporting by Valentine Baldassari and Diana Mandiá; Editing by David Goodman and Bernadette Baum)
Liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state for ease of storage or transport. It is primarily used as a fuel source and is considered a cleaner alternative to other fossil fuels.
European sanctions are restrictive measures imposed by the European Union against countries or individuals to influence behavior, often in response to violations of international law or human rights.
Revenue is the income generated from normal business operations, typically from the sale of goods and services. It is a crucial measure of a company's financial performance.
Project delivery refers to the process of completing a project from initiation to closure, ensuring that it meets its objectives, timelines, and budget constraints.
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