- Russia’s Arctic LNG 2 project has resumed shipments after months of inactivity, with tankers heading to Asia.
- The project faces heavy US and EU sanctions, which have disrupted sales and forced reliance on a “shadow fleet.”
- Despite challenges, discounted cargoes may attract Asian buyers, though secondary sanctions remain a major risk.
Russia’s sanctioned Arctic LNG 2 project has restarted shipments after months of being idle, with several tankers now en route to Asia. Vessel-tracking data from Bloomberg shows that at least four LNG carriers recently departed the Arctic LNG 2 terminal on the Gydan Peninsula, operated by Novatek PJSC, according to Marine Insight.
Among them, the Iris and the Voskhod—both blacklisted by the United States—left for North Asia via the Northern Sea Route on August 15 after weeks of idling. Two other tankers sailed from the facility earlier in the week.
A Flagship Project Under Pressure
Arctic LNG 2 is a centerpiece of Moscow’s strategy to triple LNG exports by 2030, following the collapse of pipeline gas sales to Europe. However, since 2023, the project has faced crippling US and EU sanctions, leaving buyers wary and delaying full-scale operations.
While the terminal managed to ship some LNG in 2023, much of it ended up in floating storage units in Russian and European waters rather than reaching end customers. By October 2023, operations were forced to halt as winter ice returned and demand dried up. Although loading resumed in June 2024, no cargoes have yet been delivered to an import terminal.
Reliance on a Shadow Fleet
Russia has struggled to secure stable buyers for its Arctic LNG. One sanctioned tanker last year spent months sailing through northern Europe, the Mediterranean, the Suez Canal, and the Chinese coastline without offloading its cargo before returning to Russian waters.
To maintain exports, Moscow has assembled a “shadow fleet” of around a dozen LNG tankers. Some are equipped for icy Arctic conditions, while others have repeatedly switched management to obscure ownership and avoid detection under sanctions.
Future Prospects in Asia
Energy analysts suggest that Asian markets—particularly China and India—could show interest in discounted Russian LNG cargoes. Still, the looming threat of secondary US sanctions continues to cast uncertainty over the project’s prospects, making future trade highly unpredictable.
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Source: Marine Insight
