A liquefied natural gas (LNG) vessel, the Voskhod, which is subject to U.S. sanctions, has recently docked at Russia’s Arctic LNG 2 plant. This marks the second time a sanctioned vessel has called at the plant this year, highlighting Russia’s ongoing efforts to export LNG despite international restrictions.
Sanctioned Vessels and Arctic LNG 2 Operations
Ship-tracking data from LSEG and Kpler confirmed the arrival of the Voskhod at the Arctic LNG 2 plant. The vessel was previously known as North Mountain and was among several LNG vessels sanctioned by the U.S. Department of State in October 2023. While its registered owner remains LNG Beta Shipping, its ship or commercial manager changed to Igarka OOO, a Moscow-registered entity, on May 23.
This follows the arrival of the Iris (formerly North Sky), the first sanctioned vessel to visit Arctic LNG 2 this year, which loaded a cargo on June 26. This was reported as the ninth cargo loaded from the plant. The Iris is currently located near Kolguyev island in western Russia. Both the Voskhod and Iris are Arc4 ice-class vessels, enabling them to operate in light and medium sea ice conditions along Russia’s Northern Sea Route.
Sanctions Impact
The Arctic LNG 2 project, with a 60% ownership by Russia’s Novatek, was designed to become one of Russia’s largest LNG facilities, with an eventual target output of 19.8 million metric tons per year from its three planned trains (each with a capacity of 6.6 Mtpa). The project’s other shareholders include TotalEnergies, China National Petroleum Corporation (CNPC), China National Offshore Oil Corporation (CNOOC), Mitsui Group, and JOGMEC, though non-Russian investors have largely suspended participation due to sanctions.
However, the project’s prospects have been significantly clouded by international sanctions, particularly from the U.S. and EU, imposed in response to Russia’s conflict with Ukraine. These sanctions have created major difficulties, affecting construction, logistics, and financing, and have notably impeded the project’s ability to sell its LNG. Despite initial cargoes being loaded, securing consistent buyers has proven to be a significant challenge, with more than a million cubic meters of LNG reportedly remaining unsold and afloat on floating storage units and several carriers.
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Source: Reuters
