Russia Assembles Flotilla of LNG Carriers in Arctic Waters Ahead of EU Transshipment Ban

Russia continues to amass LNG carriers in preparation of the impending EU transshipment ban. Starting in March 2025 EU export terminals will be off limits to Russian LNG forcing the country to look instead to ship-to-ship transfers.

For this purpose Russia is seemingly readying a small fleet of vessels to transfer supercooled gas from the Yamal LNG project. Currently specialized Arc7 ice-class vessels carry the LNG through ice-covered waters before delivering it to terminals in Europe, from where it is routinely re-exported to other markets. 

In 2024 around 2.6mn tonnes of Russian LNG passed through the EU in this fashion. It will require approximately 35-40 ship-to-ship transfers to replace terminal capacity. 

AIS tracks show more than a half dozen LNG carriers circling in the waters between Murmansk and Novaya Zemlya collectively covering tens of thousands of nautical miles since the beginning of the year. The flotilla includes both previously sanctioned “shadow fleet” vessels as well as white-listed ships currently not in the scope of U.S. or European sanctions. 

All vessels are part of the “North”-series constructed by South Korea’s Hanwha Ocean. The vessels in question are the North Mountain, North Air, North Way, North Sky, North Moon, North Ocean, and North Light.

The first four vessels make up the initial batch entering into service in 2024. Intended for service with the Arctic LNG 2 project the U.S. State Department was quick to include them in the August 2024 round of sanctions. The vessels’ owner, White Fox Ship Management, was similarly blocked. 

The latter three vessels – North Moon, North Ocean, and North Light – have been heading for Arctic waters following their late 2024 deliveries, with a fourth one, North Valley, expected to follow before the end of March. 

The Yamal LNG project relies on a limited number of STS transfers totaling around a dozen every year. The activity at the Kildin Island transfer location has been increasing in recent months. North Moon picked up its first load over the weekend. Other North-series vessels look set to follow. It is unclear if Novatek, the project’s majority owner, will risk deploying already sanctioned vessels to carry LNG from its thus far unaffected Yamal plant. 

The Biden Administration had been determined to not allow Russia to expand its transport capacity, sanctioning more than a dozen LNG carriers, including the first four North-series vessels. In later rounds it also blocked the first Yamal Arc7 carrier, Christophe de Margerie. 

It is unclear if this effort will continue under the Trump Administration or if Russia can begin rebuilding its LNG fleet.

In addition to the North-series vessels numerous other shadow fleet or sanctioned LNG carriers remain scattered around the world. Pioneer, Nova Energy and East Energy continue holding in or near Nakhodka Bay in Russia’s Far East after picking up product from Arctic LNG 2 this summer. Other vessels including sanctioned Mulan and La Perouse have been idling near the northern terminus of the Suez Canal and off the coast of Oman for weeks. 

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