Moscow finds buyer for its sanctioned gas
Photo: tanker Mulan (arxipelagos.gr)
A Russian liquefied gas tanker has docked in China for the first time despite US sanctions, Bloomberg reports.
The vessel Arctic Mulan, carrying fuel from the blacklisted Arctic LNG 2 plant in northern Russia, docked at the Beihai LNG terminal.
The Arctic LNG 2 project was sanctioned by the US administration under President Joe Biden and began exporting fuel using the so-called shadow fleet last year. However, no tanker had previously entered import terminals, as buyers feared potential retaliation from the US.
Russia’s strategy
Arctic LNG 2, led by Novatek PJSC, plays a key role in Russia’s plans to triple LNG exports by 2030. Moscow aims to open new markets following a sharp decline in pipeline deliveries to its traditional European customers.
Unlike the pressure on India over its imports of Russian oil, the US has so far refrained from tightening restrictions on buyers of Russian LNG. This is due to Washington’s efforts to facilitate a ceasefire agreement in Ukraine.
US President Donald Trump stated that his personal talks with Vladimir Putin in August were "extremely productive."
Delivery history
Arctic Mulan loaded a cargo of LNG in early June from a floating storage facility in eastern Russia. The fuel in storage came from the Arctic LNG 2 plant.
Last summer, the facility produced eight gas shipments but was forced to suspend operations in October. The reasons were a lack of buyers and seasonal ice formation around the site. As a result, tankers transferred the fuel to storage facilities within Russia.
Sanctions on Kremlin projects
According to Reuters, US and Russian officials discussed several energy deals on the sidelines of negotiations in August.
Three sources reported that the possibility of Exxon Mobil returning to the Sakhalin-1 project was discussed. Another idea involved supplying American equipment for Russian LNG projects, such as Arctic LNG 2, which are under Western sanctions.
Analysts and former diplomats are calling for increased pressure on Russia’s energy revenues. Jeffrey Payette, one of the architects of sanctions against Arctic LNG 2, said it is now critical to prevent the expansion of exports, especially in light of EU statements about phasing out Russian gas. Earlier, Payette stated that Washington’s goal is to "strangle" this Russian project.
