US-based Polar LNG is seeking approval to purchase discounted equipment from sanctioned Russia’s Arctic LNG 2 project, owned by gas major Novatek (NVTK), to support an LNG plant in Alaska, according to Reuters citing company CEO Joel Riddle.

As followed by bne IntelliNews, Russia remained the fourth-largest supplier of natural gas to the EU in 2025, exporting nearly 38bn cubic metres despite ongoing efforts by the bloc to reduce energy reliance on Moscow following its full-scale invasion of Ukraine. 

For LNG in particular, the EU remained the top buyer of Russian Arctic LNG operated by Novatek despite the 2027 phase-out pledge.

Reuters now reports that Polar LNG aims to acquire equipment, including a partially completed liquefaction train from Arctic LNG 2, a project under US sanctions imposed by both the Joe Biden and the Donald Trump administrations. 

The company is reportedly seeking approval from the Office of Foreign Assets Control (OFAC), while the US Treasury declined to comment, and Novatek did not respond to requests.

Riddle said the company plans to make a final investment decision by mid-2027 and begin production in 2029 or 2030. He noted that the project will target exports to Japan, South Korea and other markets, and that the equipment is “Arctic tested”, making it suitable for Alaska’s North Slope conditions.

The project’s first phase is expected to require $8bn-9bn in investment, with potential expansion through additional phases of similar scale. Polar LNG intends to finance more than half of the project with US capital, while remaining open to investment from international partners.

Reuters also reiterated previous reports that investor Gentry Beach, with ties to Trump, is involved in the project. The company reportedly also plans to acquire six icebreakers and coordinate with the broader Alaska LNG initiative supported by the US administration.