A company planning to build a liquefied natural gas plant on Alaska's North Slope is seeking U.S. approval to acquire equipment from a Russian firm already under sanctions, even as questions mount over where the project's own early money came from. Polar LNG, which envisions a nearshore plant near Milne Point, is asking federal regulators for permission to buy a partially built liquefaction platform and other hardware tied to Russia's Arctic LNG 2 project.
According to Reuters, Polar LNG is hoping to get approval from the U.S. Office of Foreign Assets Control to buy the equipment, which includes the gravity-based liquefaction structure originally built for the sanctioned Russian venture. The first phase of the Alaska project alone is projected to require $8 billion to $9 billion in investment to produce 7 million tons of LNG a year, Reuters reports, with the company aiming for a final investment decision in mid-2027 and first production in 2029 or 2030. Novatek, which owns about 60 percent of Arctic LNG 2, told Reuters it was aware of Polar LNG's interest in its production technology.
The equipment question has taken on new weight following reporting from The New York Times, which reported that the Polar LNG project received secret funding from a powerful Russian energy company that was also to supply the project's technology. The same report says Polar LNG's start-up funding ostensibly came from a company in the United Arab Emirates, and that Joel Riddle, who served as Polar LNG's chief executive until he resigned in September, said he had been misled about the true sources of that start-up money. The Times reported that the overall project has been valued in the multibillion-dollar range.
A Leadership Shakeup Amid the Scrutiny
Riddle's departure has already reshaped the company's leadership. Polar LNG has named Tim Talkington, a former Goldman Sachs banker, as acting chief executive following Riddle's exit, according to the Alaska Landmine. The outlet also reported that Polar has applied to the U.S. Treasury Department for a waiver to take ownership of the unfinished platform from Novatek, which the company says it would use to liquefy North Slope gas for shipment aboard icebreaking LNG carriers.
Polar LNG's broader plan calls for tapping natural gas in Alaska's northern reaches and exporting it to allies abroad, per the Times report. The company intends to finance more than half of the project with U.S. capital while remaining open to investment from Japan and other countries, Reuters reported, and it has also laid out plans to buy six icebreakers to support Arctic operations. Separately, Semafor has reported that the project is designed to eventually reach a capacity of 21 million tons per year, with Polar LNG buying hardware and service ships originally destined for Russia's Arctic 2 LNG terminal.
The Diplomatic Backdrop
The equipment request is unfolding against a sensitive diplomatic backdrop. The Times reported that Vladimir V. Putin discussed the Alaska gas plan with Trump envoys Steve Witkoff and Jared Kushner, according to people familiar with the negotiations, and that White House officials believe energy deals of this kind could smooth relations with Moscow and eventually help end the war in Ukraine. The Times also noted that Putin said publicly in 2025 that Russia was discussing with its American partners the possibility of using Novatek technology to produce liquefied natural gas in Alaska.
Oil & Gas Journal reports that the project would source gas from existing infrastructure at Prudhoe Bay, moving it through a short pipeline to a nearshore liquefaction plant before loading it onto specialized ice-class carriers for year-round export, according to Oil & Gas Journal. That publication also notes the route from Alaska to Japan would run approximately 3,600 miles, compared with more than 10,000 miles from the U.S. Gulf Coast — a distance advantage the company has pointed to in pitching the project to Asian buyers, with output potentially sold to Japan, South Korea and other countries.
How It Compares to a Larger, Stalled Rival
Polar LNG is not the only Alaska gas megaproject drawing attention. The long-discussed Alaska LNG project, a separate and far larger effort, has not reached a final investment decision despite an earlier target for that milestone, according to the Anchorage Daily News. Developer Glenfarne has estimated that project could cost up to $55 billion. The Times has also reported that questions remain about the viability of the Alaska LNG project, which has long been considered but has not yet been formally approved by its developer.
That larger project has also been tied to international investment pledges. The Times reported that the Trump administration said South Korea would invest up to $200 billion in various U.S. power projects, including an LNG facility in Alaska, as part of a broader $350 billion South Korean investment commitment in the United States under a trade deal. South Korean officials, however, have said those investments would depend on the economic feasibility of the projects, the Times reported.
Gcaptain reports that Polar LNG's proposed 7 million tons per year capacity closely aligns with the 6.6 million tons per year design of Arctic LNG 2's Train 3, underscoring how directly the Alaska venture is modeled on the sanctioned Russian equipment it hopes to acquire. The outlet also notes that Alaska officials and developers are pushing to reassert the state's role in global LNG markets as a potential supplier to Asia. Whether Polar LNG secures the federal waivers it needs, and how its funding questions are ultimately resolved, remains to be seen.
