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.
UK Maritime Services Ban on Russian LNG Threatens Seapeak’s Arctic Yamal Fleet The UK maritime services ban will apply to Seapeak Maritime (Glasgow) Ltd., a key provider of shipping services to Russia’s Yamal LNG project, the government confirmed to HNN. Without Seapeak’s six Arc7 LNG carriers the project would face significant logistical challenges. The upcoming EU import ban will further complicate the project’s future.
Britain to Ban Transport of Russian LNG on UK-linked Vessels The UK continues to lead the way against Russia’s LNG sector. New measures will directly target the transport of Russian supercooled gas to markets around the world. The ban will disallow UK-linked companies from carrying the country’s gas or providing maritime services, such as insurance or maintenance, to the vessels.
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.
EU Sanctions Russian ‘Shadow Fleet’ Vessels Routinely Passing Through Norwegian Waters, Stopping at Honningsvåg A liquefied natural gas carrier working for Russia’s Yamal LNG project stopped in Honningsvåg in Northern Norway last week. Now the EU has sanctioned the vessel. Will Norwegian authorities put an end to allowing Russian LNG vessels resupplying in the country’s ports?
Russia’s Arctic ‘Yamal LNG’ Gas Plant Saw a Record 287 Cargo Loadings in 2024 While Western sanctions have impeded or complicated much of Russia’s energy economy, the Yamal LNG plant continues to export liquefied gas like clockwork. Every month around 25 vessels load cargo at the Sabetta terminal, for a total of 287 deliveries in 2024, new data by Center for High North Logistics show.
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.
How Russia’s Security Service FSB Gained Control Over the Yamal LNG Fleet Reportedly Setting Up Covert Cargo Operations A targeted operation by Russia’s Federal Security Service (FSB) successfully pushed out Western officers from the Yamal LNG fleet in favor of Russian personnel, a HNN investigation has uncovered. The FSB action establishes significant Russian control over the vessels in support of a possible covert cargo operation between European ports and the Sabetta terminal.
EU Countries Spent Close to €7bn on Russian LNG in 2024 Europe cannot shake its addiction to Russian liquefied natural gas. Throughout 2024 EU members purchased liquefied gas from Russia worth almost €7bn. Some member states continue to spend more on their purchases of Russian LNG than they provide in military aid to Ukraine.
Novatek Executive Traveling to Brussels to Soften EU Stance on Russian LNG, Sources Say A senior Novatek executive is reportedly traveling to Brussels in an attempt to moderate Europe’s position on Russian liquefied natural gas. The EU remains a key destination for Russian LNG, but an increasing number of member states are working towards a ban.
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.
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.
EU Bans Resale of Russian LNG, Impacts Remain to be Seen After much debate and wrangling the EU and its member states are set to sanction the transshipment of Russian liquefied natural gas in EU ports. It will take months for the impact of the ban, which is suggested to come into effect in March 2025, to become apparent. In anticipation of sanctions Novatek has begun assembling a growing fleet of LNG carriers.
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.
EU Receives 100 Shipments of LNG and Gas Condensate from Yamal LNG Project Russia continues to send nearly the entirety of LNG and gas condensate production from Yamal LNG to Europe. Throughout the first 120 days of 2024, EU member states took delivery of almost 100 shipments – each valued in the range of USD 40 million.
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.
Upcoming EU Sanctions Look Set To Block Transshipment of Russian LNG, But Allow Imports The EU looks set to target existing Russian production of liquefied natural gas for the first time as part of the upcoming 14th sanction package. While previous sanctions focused on inhibiting future LNG projects, attention could now begin to shift to already producing facilities.
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.
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.
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.
No Shipments from Russia's Arctic LNG 2 Until March as Sanctions Block Delivery of LNG Carriers US sanctions continue to delay the initial shipment of gas from Russian gas producer Novatek’s Arctic LNG 2 project. The lack of ice-capable carriers for liquefied natural gas has delayed the first cargo until at least March. Meanwhile, Novatek has begun looking for new buyers of its sanctioned gas in China.
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.
Putin Green-lights Novatek’s Massive Murmansk LNG Project Novatek's planned Murmansk LNG plant has cleared a key hurdle. The project will benefit from the expected liberalization of the liquefied natural gas sector and would become the company’s third project in the Arctic.
Norway Supplied Almost Half of German Natural Gas Imports During First Nine Months of 2023 In a stark reversal of long-standing gas flows, Norway has now fully adopted Russia’s role as Germany’s largest gas supplier. Norway’s share of German gas supply has increased from just under 20 percent in 2021 to 48 percent in 2023 thus far. Meanwhile, Russian gas major Gazprom faces its lowest production in more than 40 years.
US Further Tightens Sanctions Screw Targeting Russian Arctic Gas Projects Existing Western sanctions targeting Russia’s Arctic oil and gas development plans have only had limited impact. Now the US aims to further slow down key energy projects in the region with measures specifically aimed at Novatek’s Arctic LNG 2 project.
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.
Novatek To Surpass Gazprom As EU’s Largest Russian Gas Supplier, Highlighting Continued Reliance on LNG Ukrainian officials again urged the EU to end imports of Russian liquefied natural gas. Russia continues to supply more than 15 percent of the EU’s liquefied natural gas enabling gas producer Novatek to surpass gas giant Gazprom to become the country’s largest supplier to the continent.
Massive Floating LNG Storage Hub Arrives in Kamchatka in Far East With the second gas transfer hub now in place Russia’s Novatek appears set to further economize the transport scheme of its liquefied natural gas exports from the Arctic to Europe and Asia. Transshipment hubKoryak FSUarrived in Bechevinskaya Bay after a three week tow from South Korea.
New LNG Storage Hub Set to Accelerate Flow of Russian Gas to Europe A new transfer point for liquefied natural gas in waters adjacent to the Barents Sea will further expedite the delivery of Russian gas to Europe. The hub arrived this week after a 12,000 nautical mile journey from South Korea and will begin operations this summer.
World’s Largest LNG Storage Barge Approaches Bodø En Route to Russian Arctic Novatek’s long-awaited hub for liquefied natural gas is about to arrive in the Barents Sea. It is currently around 350 km to the southwest of Bodø. Meanwhile, new modules for Novatek’s Arctic LNG 2 plant are being shipped from China via the Northern Sea Route. The company has also sent its first delivery of liquefied natural gas of the year to China along the route.
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.
EU Begins Consultations to Curb Inflow of Russian LNG Following earlier calls by the EU Commission and member states to begin limiting imports of Russian liquefied natural gas, discussions on the issue began last week as part of a broader gas package.
Russia to Begin Year-Round Shipping on Entire Northern Sea Route in 2024 Russian officials announced that year-round exports of liquified natural gas from the Arctic to Asia will begin early next year. A milestone for Novatek, the company has worked toward regular winter deliveries along the eastern part of the Northern Sea Route for the past five years.
China To Supply Key Turbines to Novatek’s Arctic LNG 2 The Arctic LNG 2 project clears a major, and possibly final, hurdle. Chinese suppliers will deliver essential gas turbines allowing Novatek to open the LNG plant in 2023.
The Netherlands to Phase Out Russian Arctic LNG Following the UK earlier in 2023, the Netherlands has begun phasing out liquefied natural gas from the Russian Arctic. This leaves Belgium, France and Spain as the main importers of LNG from the country.
Second Ship Transporting Russian Gas Stops in North Norway Massive tankers carrying Russian gas to Europe continue to use waters near Honningsvåg in North Norway for stopovers. AfterVladimir Voroninin mid-April, a second ship,Eduard Toll,entered Norwegian coastal waters on April 30.
Troubled Waters: LNG Ship Carrying Russian Gas Stops in North Norway A natural gas tanker carrying LNG for Russian company Novatek made a 24h pitstop near Honningsvåg raising questions about the adequacy of Norwegian sanctions. The Norwegian Ministry of Foreign Affairs did not reply to a request for comment in time for publication.
