Sanctioned Russian LNG Tankers Continue Ship-to-Ship Transfers Despite Hurdles

A U.S.-sanctioned gas tanker picked up cargo from Russia's Arctic LNG 2 plant and performed a ship-to-ship transfer, suggesting Moscow continues some exports. Despite Western sanctions impacting exports due to actions in Ukraine, LNG transfers continue. The U.S. imposed more sanctions on Russian entities, citing deceptive shipping practices.

A U.S.-sanctioned gas tanker, which recently picked up a cargo from Russia's Arctic LNG 2 plant, has been recorded conducting a ship-to-ship transfer. This indicates that despite Western sanctions over Russia's actions in Ukraine, Moscow is still managing to maintain some LNG exports.

Monitoring service TankerTrackers.com revealed on Monday that the vessel, Pioneer, completed a transfer to the UAE-owned, Indian-managed New Energy tanker north of the Suez Canal. The Arctic LNG 2 project, anticipated to be Russia's largest, began its LNG production in December. However, exports have faced obstacles due to the sanctions. LNG ship-to-ship transfers are typically undertaken to move LNG from expensive ice-class tankers to cheaper conventional carriers and can also make cargo tracking more complex. Nations like India continue to import Russian LNG, cautiously navigating diplomatic tensions.

Last Friday, the United States announced further sanctions on Russian entities and individuals connected to the Ukraine conflict. The U.S. Department of State indicated that Pioneer and another tanker, Asya Energy, engaged in 'deceptive shipping practices' such as deactivating the automatic identification system while in Russian waters. Both tankers were seen loading LNG at the Arctic LNG 2 facility in early August. Despite sanctions, Russia plans for Arctic LNG 2 to achieve an output of 19.8 million metric tons of LNG annually, although sanctions may disrupt these aims.

(With inputs from agencies.)