- Iris LNG (formerly North Sky), a U.S.-sanctioned LNG tanker, arrived at Arctic LNG 2 on June 26, according to S&P Global data.
- Loadings from the Novatek-led project have been suspended since October 2024 due to sanctions and limited buyer interest.
- This development signals a potential restart of exports, with the Northern Sea Route (NSR) now open for the season.
The arrival of the sanctioned Iris LNG at Arctic LNG 2 on June 26 indicates possible resumption of exports from the heavily restricted project. Formerly named North Sky, the vessel was sanctioned in August 2024 along with other tankers tied to Arctic LNG 2, just as the project’s first train began loading operations, according to S&P Global.
Although a few cargoes were loaded between August and October, international sanctions made sales difficult, and volumes were rerouted to domestic floating storage units (FSUs) — Saam in Murmansk and Koryak in the Far East.
Project Snapshot and Capacity Outlook
- Operated by Novatek (60% stake), Arctic LNG 2 is designed with three trains, each capable of 6.6 million mt/year, totaling 19.8 million mt/year.
- Initial timelines aimed for Train 1 to launch in 2023, Train 2 in 2024, and Train 3 in 2026.
- However, sanctions delayed Train 1, while Train 2 only started LNG production in May 2025. Train 3 timelines are also expected to slip.
Broader Russian LNG Landscape
Despite sanctions, Russia maintains several LNG facilities:
- Yamal LNG (Novatek): Exported 20.9 million mt in 2024.
- Sakhalin LNG (Gazprom): Supplied 10 million mt in 2024 to Japan, China, and South Korea.
- Portovaya LNG and Vysotsk LNG: Smaller projects sanctioned as of February 2025.
Russia’s LNG exports in 2025 so far total 17.1 million mt, compared to 33.4 million mt in 2024. Top buyers YTD: France (3.3 mt), Japan (3.1 mt), and China (3.0 mt).
Northern Sea Route & Market Implications
The Northern Sea Route (NSR), open from late June to November, allows direct shipments to Asia, bypassing Europe. Russia’s first 2025 cargo via NSR departed Yamal LNG aboard the Georgiy Ushakov on June 17, passing through the Bering Strait as of June 27.
Eric Yep of Commodity Insights noted that NSR transits “will bring 4–5 months of additional LNG supply to North Asia,” exerting downward pressure on Platts JKM benchmark prices, which were assessed at $12.86/MMBtu on June 26.
The arrival of a sanctioned LNG vessel at Arctic LNG 2 signals a quiet push by Russia to resume exports despite ongoing geopolitical constraints. With the NSR open and Asian demand high, market watchers expect increased flows in Q3–Q4, posing a bearish tilt to regional LNG prices — and a fresh test for enforcement of sanctions amid rising global energy demand.
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Source: S&P Global
