Russia’s sanctioned Arctic LNG 2 export plant appears to be testing the current U.S. willingness of sanctions enforcement as a cargo from the facility, which is sanctioned by the United States and Europe, has just docked at a Chinese import terminal.
The Arctic Mulan LNG tanker arrived at the Beihai LNG terminal and docked there on Thursday, ship-tracking data compiled by Bloomberg showed. The tanker is believed to carry LNG originating from Arctic LNG 2 and loaded from a floating storage unit in eastern Russia in early June, per the data compiled by Bloomberg.
The Arctic Mulan has not discharged the cargo yet, according to various ship-tracking reports.
If it does though, the cargo will become the first shipment of LNG from Russia’s project received by anyone since the plant completed its construction and commissioning.
In recent weeks, signs have emerged that Arctic LNG 2 is coming back to life after a year of no activity and is looking for buyers in Asia.
At least four tankers carrying LNG from Russia’s flagship Arctic project departed in August from the export facility via the Northern Route to Asia, vessel-tracking data compiled by Bloomberg showed earlier this month.
The latest development signals that Russia is trying – again – to sell the LNG from the sanctioned project led by Russian firm Novatek, and possibly test the resolve of the U.S. sanctions against Russian energy projects and exports amid the latest push by U.S. President Donald Trump to help negotiate peace in Ukraine.
The LNG cargo docking in China is not the result of demand amid virtually non-existent Chinese spot demand for LNG, Rystad Energy analyst Jan-Eric Fähnrich told Bloomberg.
“Thus, this move is not driven by need but designed to test Washington’s softened stance on Russian energy sanctions,” Fähnrich added.
“US President Donald Trump’s reaction will likely dictate whether this remains a one-off transaction, or it opens the door for a number of vessels currently eastbound via the Northern Sea Route.”
By Charles Kennedy for Oilprice.com
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