Russia’s First Homebuilt Arc7 LNG Carrier Completes Ice Trials, Adds to Arctic Traffic Off Norway Russia’s new carrier for liquefied natural gas,Alexey Kosygin, has completed a Northern Sea Route transit doubling as ice trials, underscoring Moscow’s ability to sustain Arctic LNG exports despite sanctions. The voyage expands Russia’s shadow tanker fleet and heightens maritime safety concerns for Norway.
Russia Delivers First Domestically Assembled Arc7 LNG Carrier After Years of Sanctions Delays Russia has completed its first domestically assembled Arc7 LNG carrier after years of sanctions-driven delays, offering a rare boost to Novatek’s Arctic LNG 2 project but underscoring the deep challenges still facing Russia’s shipbuilding ambitions. The vessel will double the project’s winter export capacity.
US Sanctions Against Russian LNG Start to Fray as Chinese Arctic Construction Yard Seeks Lifting of Measures Ten months into the Trump Administration Russia’s Arctic LNG 2 operation continues to pick up steam as the White House has not announced any new sanctions against the sector. Now a Chinese manufacturer who previously provided LNG modules to Russia is seeking removal from the sanctions list. On the EU side two Arctic heavy lift vessels,AudaxandPugnax, were unsanctioned last week.
EU Includes Russian LNG in 19th Sanctions Package; U.S. Focuses on Oil Sector Targets Rosneft and Lukoil In a one-two punch new U.S. and EU sanctions target the Russian energy sector, including oil majors Rosneft and Lukoil, and the country’s LNG sector. After years of debate the EU has agreed on banning imports of Russian LNG by January 1, 2027; a significant escalation of the bloc’s sanctions regime.
UK Sanctions Target Russian Arctic LNG, With US Remaining on Sideline and EU Continuing Debate The UK increased pressure on Moscow with sanctions against major Russian oil companies, 44 shadow fleet vessels, and a Chinese gas import terminal. The impact of the sanctions remains to be seen as the US keeps on the sideline and debate in the EU about its 19th sanctions package is ongoing.
Russia’s Arctic LNG 2 Sees Flurry of Activity Following Alaska Summit, Including Shipment of Valuable Gas Condensate After months of inactivity Russian gas carriers in the Barents Sea simultaneously lifted their anchors as the Trump-Putin summit took place in Alaska. Then a gas condensate tanker loaded cargo at the Arctic LNG 2 project, a first in 2025.
China Looking to Buy More Russian Arctic LNG as EU Aims to Announce Plans in May to Phase Out Imports As the EU is gearing up to publish its roadmap to phase out Russian LNG, China’s appetite for deliveries of supercooled gas from the Arctic could see a rise in the coming months. Whether China will also welcome cargoes from the sanctioned Arctic LNG 2 project remains a key question.
Russia Continues Working on Sanctioned Arctic LNG 2 With Wison Power Modules Installation and Gas Flaring New satellite images reveal the progress Novatek has made at the Arctic LNG 2 project. Power units delivered by Chinese company Wison appear installed and recent gas flaring suggest a temporary re-start or test start-up of the facility.
Russia’s Novatek Eyes India as Market for Sanctioned Arctic LNG Russian liquefied natural gas producer Novatek continues to scour the globe for potential buyers of sanctioned gas from its Arctic LNG 2 project. At an energy conference the company now attempted to make inroads on the Indian market.
U.S. Sanctions Catch Up to Chinese Supplier Wison for Illicit Delivery of a Power Plant to Arctic LNG 2 As part of a massive sanctions package days before the end of the Biden administration, the U.S. blocked a key Chinese technology provider, Zhoushan Wison Offshore and Marine. The company had been the focus of a HNN investigation in October 2024.
Cargo Shipment from Belgium to Russia Highlights Continued Flow of LNG Technology from EU A cargo delivery from Antwerp in Belgium to Novatek’s Yamal LNG plant in the Russian Arctic raises questions about the effectiveness of EU sanctions. The Antwerp shipment is part of a much larger problem. By some accounts European companies have supplied more $600m worth of equipment to Russia since the beginning of the war.
Russian Sovcomflot to Operate Sanctioned Zvezda Arc7 LNG Carrier for Arctic LNG 2 Despite mounting Western sanctions Russia’s largest shipping company Sovcomflot appears set to operate ice-capable LNG carriers for Arctic LNG 2 currently under construction in Russia. New photos show the SCF logo being painted on the side of the lead vessel,Aleksey Kosygin.
Trump Presidency Could be Good News for Russia’s Arctic LNG Projects, Though Exact Policy Shift Hard to Predict The upcoming Trump presidency could provide some relief for Russia’s Arctic LNG project, experts told HNN. Existing sanctions may be eased and new ones could become less likely. The U.S.’ own LNG ambitions, however, could result in price pressure presenting a challenge to Arctic LNG 2 and Novatek.
Arctic LNG 2 Facing Vessel Shortage as Zvezda Shipyard Delays Delivery, Japanese MOL Exits Charter Contract Sanctions continue to impact Russia’s Arctic LNG 2 project. Japanese operator Mitsui O.S.K. Lines is looking to step away from the project and ice-capable LNG tankers under construction at Russia’s own Zvezda shipyard have been delayed again.
China’s Wison New Energies At Risk of Sanctions U.S. Official Says as the Delivery of Arctic LNG Power Plant Imminent China's Wison New Energies exposes itself to significant sanctions risk if it delivers the power plant to Russia’s Arctic LNG 2 project, a U.S. state department official stated to HNN. Two of the three vessels carrying the massive modules have now arrived at Russia’s doorstep after a month-long voyage across the partly ice-cover Arctic.
Wison Modules En Route to Arctic LNG Project In Defiance of Sanctions A Chinese-manufactured power plant for a sanctioned Russian LNG project continues to inch closer to the Arctic. Three heavy lift vessels have reached the northern Pacific and are days from passing through the Bering Strait.
Inside the Elaborate Scheme to Transport a Chinese Power Plant to Russia’s Arctic Undetected In a desperate attempt to salvage Russia’s largest liquefied natural gas project a small fleet of Chinese cargo vessels has set sail for the Arctic. Aboard is a massive power plant for Novatek’s Arctic LNG 2 project, assembled at China’s Wison New Energies for the past two years. With only weeks left before winter sea ice will make the route impassible the delivery is a race against time and against Western sanctions.
Inside the Elaborate Scheme to Transport a Chinese Power Plant to Russia’s Arctic Undetected In a desperate attempt to salvage Russia’s largest liquefied natural gas project a small fleet of Chinese cargo vessels has set sail for the Arctic. Aboard is a massive power plant for Novatek’s Arctic LNG 2 project, assembled at China’s Wison New Energies for the past two years. With only weeks left before winter sea ice will make the route impassible the delivery is a race against time and against Western sanctions.
‘Shadow Fleet’ LNG Carrier Travels Up Norwegian Coast After Failed Attempt to Deliver Sanctioned Cargo Six weeks after a sanctioned load of liquefied natural gas traveled down the Norwegian coastline, the same cargo returns to the Arctic after a failed attempt to transit the Suez Canal. Again traveling on an unflagged and uninsured LNG tanker with consequences for marine and environmental safety, experts say.
Novatek Denies Involvement With Arctic ‘Shadow Fleet’, Official Records Suggest Otherwise Russia's largest natural gas producers Novatek, issued a forceful statement that it is not involved in the establishment of the LNG shadow fleet. However, sanctions documents and a company report showing office addresses and ownership structures tie the company to the operation.
Safety Takes a Backseat as Russia’s LNG ‘Shadow Fleet’ Operates in Arctic Without Permits As Russia continues to expand its liquefied natural gas shadow fleet to bypass sanctions, maritime safety in the Arctic is increasingly falling by the wayside. Several aging LNG vessels traveled through the Arctic without applying for or receiving Northern Sea Route permits, likely in an effort to obscure their illegitimate activities.
Russian LNG Carrier Goes Dark in Norway’s Arctic Waters to Circumvent Sanctions A Russia-affiliated LNG carrier circled for two weeks to the North of Norway. It disappeared sending out false vessel tracking signals, traveled to sanctioned Arctic LNG 2 and reappeared this week off Norway’s coast.
Chinese Wison New Energies Ceases Work on Russia’s Arctic LNG 2 Project In a surprise move Wison New Energies announced that it would halt all work with Russia. The company has been a key contributor to Novatek’s Arctic LNG 2 project. Its move could also be an attempt to shield itself from future sanctions, days after another Chinese yard was placed under sanctions by the U.S.
Sanctions Catch up with Red Box Shipping as CEO Quits Company The tide continues to turn for heavy lift vessel operator Red Box and its co-founder and CEO Philip Adkins. Following designation by the U.S. treasury for continuing to do business with Russia last month, Mr. Adkins has called it quits.
Russia’s Novatek to Complete Arctic LNG 2 by 2026 Despite Sanctions Novatek aims to complete all three production lines of Arctic LNG 2 by 2026 with a tentative "sail away" date for Train 3 of July 2026, company communication shows. Western sanctions have been able to delay the project, but work at the Belokamenka LNG construction center continues.
U.S. Targets Future Russian Energy Projects in Arctic in New Round of Sanctions The next round of U.S. sanctions against Russia targets the proposed Obsky LNG, Arctic LNG 1 and Arctic LNG 3 projects and companies building pipeline infrastructure for Murmansk LNG and Vostok Oil.
Russian Shipyard To Deliver Critically Needed Arc7 LNG Carriers for Arctic LNG 2 Novatek’s Arctic LNG 2 plant has now been sitting idle for nearly six months as Novatek has yet to receive any ice-capable LNG carriers for the project. The first two of five Arc7 vessels under construction at a Russian shipyard could become available later this year and begin LNG exports from the facility.
New U.S. Sanctions Target Arctic LNG 2 Blocking Red Box Shipping Company With its latest round of sanctions the U.S. goes after Singaporean shipping operator Red Box. A notorious violator of Western sanctions the company continued delivering modules for liquefied natural gas from China to Russia throughout 2023 and into 2024. The new measures also target vessels working for Rosneft’s Vostok Oil project.
EC Expected To Propose Partial Ban of Russian LNG as Kremlin Issues Strong Rebuke Following recent calls by Swedish and German officials to move toward restricting the inflow of Russian liquefied natural gas the European Commission has now taken up the issue. In discussions with member states the EU is suggesting a ban on transshipments.
Russia Reduces LNG Forecasts As Western Sanctions Delay Arctic Projects The latest Russian forecasts for liquefied natural gas suggest that officials do not expect Novatek’s Arctic LNG 2 project to reach full capacity before 2026, even in the most optimistic scenario. In two more conservative scenarios the Ministry of the Economy does not expect Train 2 of Arctic LNG 2 to begin production before 2028.
U.S. Teases New Sanctions Targeting Russian Arctic LNG; “There will be more, I promise” Official Says U.S. officials tease additional sanctions against Russian oil and gas industry, including Novatek’s future projects. Sanctions have proven especially effective against Arctic LNG projects by blocking the delivery of ice-capable tankers. The U.S. says it will further tighten the sanctions regime.
Russia’s Zvezda Shipyard Launches Two Additional Arc7 LNG Carriers for Novatek’s Arctic LNG 2 The launch of two more Arc7 LNG carriers provides a pathway for Novatek to secure partial shipping capacity for its Arctic LNG 2 project later this year. The use of conventional carriers during the summer months could also ease logistical constraints.
Russian LNG 2 Construction Yard Welcomes Final Module and Arrival of Hundreds of Chinese Workers Russian gas producer Novatek continues to assemble the next production line for Arctic LNG 2 all the while it shutters liquefaction of natural gas at the facility due to a lack of ice-capable LNG carriers. The company will look to the summer months, when conventional carriers can reach the project, to initiate shipments. The first conventional LNG carrier received a permit for the Northern Sea Route last week.
Putin Asks FSB for Help to Avoid Western Sanctions as Rosneft Begins Construction on Vostok Oil Pier Rosneft has begun construction on the dock for the Vostok Oil terminal at Sever Bay. Meanwhile President Putin has called on the security service FSB to assist Russian companies in avoiding sanctions.
Delivery of Final Modules for Russia’s Arctic LNG 2 Project Highlights Challenge of Designing Effective Sanctions Russia’s Arctic LNG 2 energy project offers a masterclass in how difficult it is to design effective sanctions. Despite multiple rounds of blocking measures, pre-assembled modules continue to travel from China to Russia, and shipping company Red Box opines it is not violating international rules.
Latest Round of US and UK Sanctions Takes Aim at Russia’s Arctic LNG 2 Project The US and UK announced further sanctions against Russia´s Arctic LNG 2-project targeting ship construction in Russia and South Korea and Novatek’s Belokamenka assembly yard. The impact of three rounds of sanctions in the last six months continues to delay the first shipment from the project.
Ukraine Petitions Norway, US, and EU for New Sanctions Against Russian Gas Despite Western sanctions targeting Russia’s energy sector, the country’s LNG exports have increased since 2022. A new Ukrainian petition now calls on officials in Europe and the US to expand sanctions targeting Novatek’s Yamal LNG and Arctic LNG 2 projects.
Russia's Novatek on Track to Complete 2nd Train of Arctic LNG 2 in 2024 The final module for the 2nd production line of Russian gas producer Novatek’s Arctic LNG 2 project, departed from China last week. In February the company will integrate the last three modules ahead of towing the LNG train to the Gydan peninsula this summer. While US sanctions have not yet halted construction, it remains to be seen how much LNG Novatek will be able to sell.
Undeterred by Sanctions Novatek Begins Production at Arctic LNG 2 In spite of mounting international sanctions Russian gas producer Novatek has begun production at Arctic LNG 2 and the first shipment of liquefied natural gas is likely just weeks away. The company managed to successfully redesign its facility to replace Western technology with Chinese imports and a number of Arc7 LNG carriers will enter into service in 2024.
China Continues to Deliver Prefabricated Modules in Support of Russia’s Arctic LNG 2 Project Two ice-capable heavy lift vessels,AudaxandPugnax,departed China with new modules for Arctic LNG 2. The continued delivery of equipment highlights the challenge Western officials face in stopping Novatek from completing its latest project through sanctions.
New US Sanctions Target Russia's Arctic LNG 2 - “Our Objective is to Kill that Project” In a new sanctions package the US targets Russia’s Arctic LNG 2 facility with the explicit goal of shutting down the project. As part of congressional testimony, US officials said their aim is to “systematically reduce Russia's future energy revenue.” It is unclear if or to what degree existing European and Japanese partners in the project will comply with the new sanctions.
Transport of LNG Modules to Russia Continues, Calling Effectiveness of EU Sanctions Into Question Russia’s natural gas company Novatek continues to receive prefabricated modules from China for its Arctic LNG 2 project. While EU sanctions seemingly prohibit their transport a Dutch shipping company continues to aid in their delivery.
World’s Largest Floating Structure Arrives at Gydan Peninsula After more than three years of construction and a three-week towing operation supported by a dozen ships, the world’s largest floating platform ever constructed arrived at the Arctic LNG 2 facility in Russia. Here it will be integrated with land-based infrastructure and production is set to start before the end of the year.
Russian Shipyard Zvezda Launches New Arctic Ships for Oil and LNG Transport Construction work at the Zvezda shipyard reached the next milestone with the successful launch of an oil tanker for Rosneft and an LNG carrier for Novatek. Both ships will be used to transport hydrocarbon resources from Russia’s Arctic energy projects.
Two Asian Shipyards Continue to Build LNG Tankers for New Russian Arctic Gas Project Novatek and its partners continue to push ahead with Arctic gas projects even in the face of economic sanctions. Images analyzed by HNN indicate at least 8 new gas carriers at various stages of completion. The first ones could be delivered later this year.
First Parts of Arctic LNG 2 Utrenny Terminal Put in Operation In preparation for the full commissioning of the Russian Arctic LNG 2 project the federally-constructed facilities were put in operation this week. Production of liquified natural gas is expected to start later this year according to Novatek.
Arctic Shipping Requires Large-Scale Dredging with Unknown Impacts on the Environment Shipping in the Russian Arctic relies on vast dredging operations to deepen shallow coastal areas and passages along the Northern Sea Route. As a result of sanctions western dredging operators have withdrawn from Russia raising questions if shipping routes can be maintained. And the effects of large-scale dredging on the environment are largely unknown, scientists caution.
Massive LNG Storage Ship To Travel Up Norwegian Coast to Russian Arctic Novatek’s first floating storage unit will arrive in the Barents Sea within a month of setting off a busy choreography of LNG tankers traveling up and down along Norway’s coastline. The unit has capacity to transship 20m tons of LNG per year.
Novatek Confident It will Complete Arctic LNG 2 on Schedule Despite Western Sanctions In what appears to be a turn-around for Russia’s Novatek, the company now projects confidence that it has found ways to overcome EU sanctions and will be able to complete all production lines of its flagship Arctic LNG project by 2026.
Russia Launches New Nuclear Icebreaker as it Looks East for Northern Sea Route Shipping In a well-orchestrated ceremony, Russia raised the flag on the newly completed nuclear icebreakerUralwhile launching the completed hull of the sister shipYakutiainto the water nearby. With oil and gas exports shifting from Europe to Asia as a result of sanctions, Russia’s icebreaker fleet will be key to the country’s Arctic hydrocarbon strategy.
