Russia’s ‘Shadow Fleet’ Offloads Sanctioned LNG at Asian Storage Barge For First Time

By Malte Humpert (gCaptain) –

The next element of Russia’s emerging LNG shadow fleet has materialized over the weekend. LNG carrier Everest Energy traveled to the Koryak FSU near the southern tip of Kamchatka to transfer super-chilled gas from the sanctioned Arctic LNG 2 project. Everest Energy had passed through the Arctic’s icy waters without a valid permit while traveling under a suspended registration by flag state Palau.

The Koryak floating storage barge was towed from South Korean shipyard Hanwha Ocean to the north Pacific during August 2023, but it had thus far sat idle. 

With Koryak’s sister barge, Saam FSU now also in use, the outlines of the shadow fleet operation have come into focus in recent days. Saam FSU, located near Murmansk, received two cargoes earlier this month completing the western transshipment point. 

Two months into the shadow fleet operation Arctic LNG 2 has managed to lift a total of five cargoes, with a sixth one currently in progress, but has failed to make any deliveries. The project is majority-owned by Russia’s largest LNG producer Novatek. 

LNG carrier Mulan, sanctioned by the U.S. earlier this month, approached the Utrenniy terminal on September 22, 2024 where it remains as of September 23. 

Of the six loadings, totalling roughly 770,000cbm of LNG, none have been delivered to customers, a sign that Arctic LNG 2 may face challenges finding buyers for its sanctioned product. 

The transfer from Everest Energy to Koryak FSU constitutes the first cargo to leave the Arctic. All other shipments remain in limbo high in the Arctic aboard Saam FSU and various LNG carriers.

Saam FSU has received two transfers, one each from Everest Energy and Asya Energy putting it at 75% capacity. Additionally, New Energy is returning from the Mediterranean following an unsuccessful attempt to transit the Suez Canal following suspension of its flag.

Its cargo was originally lifted from Arctic LNG 2 by LNGC Pioneer nearly two months ago. A further shipment by Asya Energy, currently transiting the Arctic Northern Sea Route, is likely also bound for an offloading at Koryak FSU.

At current production levels Arctic LNG 2 will need to continue dispatching one shipment every 7-10 days. Without regular discharges beginning soon the project will eventually reach the limits of its temporary storage options. The coming weeks will be indicative if the project can routinely find buyers to offtake its sanctioned LNG.

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