This year’s Arctic summer shipping season is off to a busy start. Liquefied natural gas (LNG) Carrier Eduard Toll completed an early-season eastbound voyage along Russia’s Northern Sea Route arriving in Xiuyu, China around 3 weeks after departing with cargo from the Yamal LNG project. It passed through the Arctic section of its voyage in under a week.
The ice-capable vessel completed the majority of the still-icy route unassisted, except for sections of the East Siberian Sea where nuclear icebreaker Sibir escorted it through remnants of thicker first-year sea ice.
Sibir continued escorting additional LNG carriers traveling back and forth between the New Siberian archipelago and the Bering Strait.
Days after Eduard Toll, Sibir assisted LNG carrier Christophe de Margerie followed by the next carrier, Fedor Litke. A fourth and fifth LNG tanker Boris Davydov and Nikolay Zubov are currently en route through the Arctic.
Russia’s Northern Sea Route provides for significant distance savings to Asia, especially compared to the ongoing detour via the Cape of Good Hope due to instability in the Red Sea. Voyages from Northern Europe to East Asia via the southern tip of Africa take at least 6 weeks, compared to 18 days or so via the Arctic.
Route of Eduard Toll carrying Russian LNG from Sabetta to Xiuyu, China. (Source: GoRadar)
In addition to liquefied natural gas, Russia is expected to send dozens of shipments of crude oil via the Arctic.
Three Gabon-flagged Aframax tankers, Korolev Prospect, Vernadsky Prospect, and Olympic Prospect, received permits for the Arctic from Russian authorities last week. Each vessel can carry up to 800,000 barrels of crude.
Besides increasingly routine LNG shipments from Novatek’s Yamal LNG project, uncertainty continues when Russia’s largest LNG producer will begin exports from its sanctioned Arctic LNG 2 project.
A record-number of Arctic permits for LNG carriers, a total of 31 as of July 15, suggest the company is putting in place the logistics chain to begin deliveries this summer. Specific markets and customers remain uncertain due to Western sanctions affecting all aspects of the project though recent reporting indicates Novatek’s efforts to market its LNG to China’s domestic market.
A number of LNG newbuilds have received permits for the route in recent weeks.
In contrast to the usual practice of making the permit details publicly available for all vessels on the Northern Sea Route, the route’s administration has for the first time withheld information for a group of four LNG carriers: North Air, North Mountain, North Sky, and North Way.
This development in combination with a recent ownership change from NYK and Sovcomflot to a Dubai-based entity has led to industry speculation that the vessels could become part of a LNG shadow fleet to carry product from Arctic LNG 2.
The first of the four vessels, North Sky, is approaching Ob Bay where both unsanctioned Yamal LNG and sanctioned Arctic LNG 2 are located in relatively close proximity.
Maersk has embarked on an ambitious program to retrofit approximately 200 vessels in its time-chartered fleet, collaborating with 50 different shipowners to improve fuel efficiency and increase cargo capacity while...
The Drewry World Container Index has fallen 5% to $1,669 per 40ft container, marking the 16th consecutive weekly decline and reaching its lowest level since January 2024. Thursday’s detailed assessment...
The global shipping industry faces a significant financial challenge as United States Trade Representative (USTR) actions to “reverse Chinese dominance and restore American shipbuilding” take effect later this month. According...
12 hours ago
Total Views: 134
Get The Industry’s Go-To News
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
— just like 107,372 professionals
Secure Your Spot
on the gCaptain Crew
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
— trusted by our 107,372 members
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.