In Desperate Move Russia Sends First-Ever Conventional LNG Carrier Through Arctic

By Malte Humpert (gCaptain) –

In a risky move aimed at overcoming Western sanctions Russian LNG producer Novatek dispatched the non-ice class LNG carrier Everest Energy onto the icy waters of the Northern Sea Route “NSR”. It is the first time a conventional carrier has attempted the route.

The voyage represents a further escalation of the risk profile of Arctic shipping. Everest Energy does not hold a permit by Russia’s Arctic permitting authority, the Northern Sea Route Administration. It is also traveling under a suspended Palauan flag with its P&I insurance status unknown. 

Everest Energy is part of Russia’s emerging Liquified Natural Gas shadow tankers fleet first reported on by gCaptain in early August. It traveled to the Arctic LNG 2 project for a second time last week and departed late on September 6. It has since entered the Kara Sea traveling east towards Asia. 

Since 2017 the Northern Sea Route has seen hundreds of shipments of liquefied gas from the Yamal LNG project using highly-specialized ice-capable vessels. But the 21-year old Everest Energy’s is the first regular carrier looking to transit the 3,500 nautical mile long route. Ice extent is traditionally lowest during mid-September when the annual minimum ice-extent is recorded in the Arctic. 

“It remains to be seen whether Everest Energy will be escorted off Wrangel Island, as there is a lot of drifting ice. This brings us right up to date with the risk of non-ice-class vessels navigating autonomously. This is a far cry from the Northern Sea Route Administration talk of safe navigation,” explains Hervé Baudu, Arctic shipping expert and Chief Professor of Maritime Education at the French Maritime Academy (ENSM).

The direct routing via the Northern Sea Route indicates that Russia is aiming to market its sanctioned LNG in Asia. Novatek’s Chinese marketing arm was sanctioned by the U.S. two weeks ago.

Russia’s initial attempts to deliver sanctioned cargo from Arctic LNG 2 to customers via traditional shipping routes have thus far been foiled by repeated rounds of U.S. sanctions. More than five weeks after carrier Pioneer picked up the first cargo from Novatek’s flagship project several vessels remain bogged down in the Mediterranean and the Arctic. 

U.S. sanctions target nine LNG carriers associated with the project. The Pacific island state of Palau has temporarily suspended the flags of five carriers pending an investigation into illegal shipping practices, including Pioneer and Everest Energy. 

Without registration vessels would likely face challenges to cross regulated international straits, like the Suez Canal. The suspension of their flags also stopped Asya Energy and New Energy in their tracks, two additional carriers carrying sanctioned LNG from the project.

Asya Energy was traveling down the Norwegian coastline when its flag was suspended. It returned to Russian waters in the days following and has since transferred its cargo to a floating LNG storage barge, Saam FSU. After receiving cargo in a ship-to-ship transfer with Pioneer, New Energy has now been idling to the north of the Suez Canal for two weeks.

Note: This article was originally published on Sunday, September 8, 2024.

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