Russia’s Novotek Loads 1st Cargo Shipment From Sanctioned Arctic LNG 2 Project

Recent satellite images reveal that Russia’s Arctic LNG 2 facility, operated by Novatek PJSC, appears to have loaded its first liquefied natural gas (LNG) cargo.

The images were taken on August 01, 2024, and show a large vessel, approximately 280 meters long, docked at Train 1 of the Arctic LNG 2 facility on the Gydan peninsula in the Russian Arctic.

The vessel is the typical size of an LNG carrier, although it has not been confirmed whether LNG was loaded.

The satellite data also shows significant gas flaring activity, indicating that the facility is increasing up production. The increased flare is a new incident, as earlier satellite images over recent weeks and months have not shown much activity.

Despite this, the vessel is not registered on regular AIS tracking systems, leading to speculation that it is part of a “shadow fleet” intended to evade international sanctions.

In response to US sanctions imposed in November to prevent Arctic LNG 2 exports, Russia is constructing a shadow fleet of vessels to transport LNG secretly. This shadow fleet consists of outdated steam turbine LNG carriers sold to Nur Global Shipping, a Dubai-based company.

Major LNG carriers, such as LNG Dubhe, Pioneer, and SCF La Perouse, have been observed engaging in unusual conduct, possibly involving ship-to-ship transfers with an unidentified LNG carrier at Arctic LNG 2.

Russia has already deployed a “dark fleet” of approximately 600 vessels to bypass oil export sanctions.

However, experts have emphasized that replicating this method for LNG is more difficult due to the global LNG fleet’s smaller size and fewer loading and unloading locations.

While Arctic LNG 2 has been restricted, Russia’s nearby Yamal LNG facility has continued to operate normally, with Sabetta reporting three recent deliveries.

European Union sanctions, which will take effect next year, are expected to significantly restrict port access and transhipment possibilities for Russian LNG cargoes.

Novatek has not responded to requests for comment, and while satellite images indicate LNG production and loading, confirmation is still awaited.

Reference: Bloomberg