Joel Riddle, former chief executive of Polar Train LNG, has accused Russian energy giant Novatek of secretly controlling the $25 billion US gas export venture, triggering a mass resignation of the company leadership. Riddle alleges Novatek was already financing and directing operations before necessary US sanctions approvals were obtained. The venture, developing a gas export terminal on Alaska's North Slope, was launched with involvement from Gentry Beach, an investor with ties to Donald Trump's family.
The allegations raise questions about Russian commercial interests seeking a foothold in the US energy industry. In September, Riddle resigned, followed by the chief financial officer, executive vice-president, and an execution manager. Polar LNG stated Riddle was a "disgruntled employee" who was terminated, insisting development activities comply with US laws.
A White House official stated granular discussions have not occurred. Novatek denied bad-faith allegations, stating the Alaska project is standalone. The Treasury said it takes potential violations seriously.
Novatek developed Arctic LNG 2, blacklisted by the US Treasury in 2023, and is negotiating expertise exchange for sanctions lifting. The project repurposes a partially constructed Novatek terminal for Alaska installation.
Source: Financial Times Markets · Summarized by HeadlinesBriefing