China to seek exemptions to US sanctions on Russian LNG

China is preparing to ask the US for exemptions to sanctions on a new Russian liquefied natural gas export plant, as companies seek to prevent disruptions to the flow of a fuel crucial to heating homes and powering industry.

State-owned Cnooc Ltd. and China National Petroleum Corp. each has a stake in Novatek PJSC’s Arctic LNG 2 project in Russia. The companies are planning to ask for the exemptions because the US measures threaten deliveries, according to people with knowledge of the matter, requesting anonymity because the plans aren’t public, Bloomberg reports.

Last month, the US imposed sweeping new measures against Moscow over the war in Ukraine, including sanctions targeting a major entity involved in the development, operation and ownership of the Arctic-2 LNG project in Siberia.

LNG vessels could fall foul of U.S. sanctions if they pick up fuel from Arctic LNG 2, the report said, adding that CNOOC and CNPC also purchase LNG from the US, and don't want to endanger their supply from American projects.