Alaska gas project leaders exit over Novatek control

The management team of Polar Train LNG has largely departed the company. The group is developing a US$25 billion gas export terminal in northern Alaska. A Financial Times report details the exodus and cites internal disputes over the project's funding sources.

Former chief executive Joel Riddle resigned in September. He stated that he felt uncomfortable with the Russian firm Novatek financing and controlling the strategic direction of the company. Chief financial officer Dan Chandra and other executives followed in their departures. Riddle told the newspaper that he raised concerns about potential breaches of US sanctions.

The project launched in March with a plan to relocate a partially built Novatek terminal to Alaska. Riddle said he understood the initial funding came from Gentry Beach, an investor linked to Donald Trump's family, and Tech Wave, a company based in Abu Dhabi. He later determined that Gentry Beach was neither a shareholder nor an executive in the venture. He discovered that Novatek was directing operations before the US Treasury Department granted permission to negotiate with the Russian group.

The Financial Times reviewed WhatsApp messages from Denis Solovyov, a Novatek board member. The messages show him discussing financing and pressing for faster fund transfers to Polar Train LNG. Polar Train rejected the allegations, calling Riddle a disgruntled employee. The company stated that Riddle had been dismissed and that the project follows US law. Novatek said it signed a memorandum with Polar Train in April while Riddle was still leading the firm.

Individuals speaking to the newspaper said the project emerged in business talks between Washington and Moscow. The discussions aimed to create deals that might help end Russia's war against Ukraine. Reports indicated a possible swap where Novatek would provide expertise for the Alaska terminal in exchange for sanctions relief on Russia's Arctic LNG 2 project.

In February, reports indicated that Gentry Beach, a university friend of Donald Trump Jr., had announced an agreement with Novatek on the Alaska gas venture. On October 9, sources said Russia was seeking sanctions relief as part of negotiations over a potential energy ceasefire with Ukraine.

The next step involves the US Treasury Department's review of the negotiation request. Approval has not yet been granted.