Sanctioned Russian natural gas plant sends shipment to Asia for first time

A Russian liquefied natural gas (LNG) export plant under sanctions has shipped cargo to Asia for the first time.

Source: Bloomberg

Details: A Russian LNG export plant under sanctions is shipping a batch to Asia for the first time, as Moscow continues to seek customers willing to purchase fuel despite US restrictions.

The company Everest Energy picked up the cargo from the Arctic LNG 2 plant in Russia’s northeast over the weekend and is now heading to Asia via the Northern Sea Route. The ship, built in 2003, came under US sanctions last month due to its suspected involvement with the "dark fleet" and its shipping certificate was revoked.

Bloomberg reported that it is dangerous for a standard LNG carrier without icebreaking equipment to traverse the Arctic trade route, which completely freezes in the northern hemisphere in winter. 

This demonstrates the lengths Russia is willing to go in order to expand its gas exports, despite US restrictions on the plant and the accompanying vessels in an attempt to stop its operations.

The final destination of Everest Energy's shipment is unknown. The ship could deliver the gas to the Koryak fuel storage unit in Kamchatka Peninsula or to an import terminal in Asia.

Background:

• A sanctioned Russian gas tanker was recently spotted near the Suez Canal, transferring gas to a non-sanctioned UAE tanker. 
• New, unknown buyers suspected of ties to Russia have started accumulating dozens of vessels capable of transporting LNG, indicating that Moscow is expanding its "dark fleet" of tankers for gas transport.

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