Russia’s ‘Shadow Fleet’ Readies for Summer as Sanctioned LNG Carriers Receive Permits for Arctic Route

In recent days at least a half-dozen sanctioned LNG carriers have received permits to sail Russia’s Northern Sea Route this summer. The vessels include last summer’s “shadow fleet” carriers Arctic Metagas (ex-Everest Energy) and Arctic Mulan (ex-Mulan) as well as recently-reflagged and sanctioned Iris (ex-North Sky), Buran (ex-North Air), Voskhod (ex-North Mountain), and Zarya (ex-North Way). 

In total close to 30 LNG carriers have now been granted permits to travel through Russia’s Arctic waters in the coming months. Among them are at least six conventional gas tankers without any ice-class. 

The bulk of the fleet remains unsanctioned and operates legally, carrying liquefied gas from the Yamal LNG project. 

But around a dozen or so sanctioned vessels could be used to load cargoes at the neighboring Arctic LNG 2 project. Last summer the plant’s majority owner, Novatek, managed to load eight cargoes from the plant, though it has been unable to find any buyers.

A number of LNG carriers used deceptive methods turning off their AIS transponders and spoofing their location, in an attempt to reach the plant undetected. Their attempts were unsuccessful and the U.S. quickly sanctioned all five vessels that loaded gas at the plant.

The issuing of permits to shadow fleet LNG carriers suggests a new attempt to load supercooled gas at the plant this summer may be in the works. 

The permit news follows an uptick in activity at Arctic LNG 2 itself, with the facility’s second production line reportedly completing the initial startup. 

In recent days LNG shadow fleet vessels have also made moves suggesting renewed delivery attempts to potential buyers may be under way. 
After passing through the Suez Canal Arctic Mulan sped across the Indian Ocean and into the Pacific with direct course to FSU Koryak, possibly to pick up LNG offloaded by other shadow fleet vessels several months ago.

“This appears to be the opening shot for the 10 ship Arctic LNG 2 Dark Fleet that is now being readied for action this summer on both sides of Siberia,” explained Kjell Eikland, managing director of Eikland Energy AS, a data provider, in a report earlier this week. 

“Last year Novatek offered prospective buyers more than 30% price discount, and incentives are likely to be at least that attractive this year,” Eikland continued.

Meanwhile another sanctioned vessel, Nova Energy has left the anchorage at Nakhodka Bay, possibly also in an attempt to complete an initial delivery. Novatek will have to move last year’s cargoes to make room aboard LNG carriers and its two FSU Koryak and Saam.

Two other shadow fleet carriers, Sputnik Energy (ex-Pioneer) and East Energy (ex-Asya Energy) remain at a Zhoushan shipyard.

The four ex-North Series vessels continue to hold positions in the Barents Sea. With an Arc4 ice-class designation the vessels may be first in line as they could reach Arctic LNG 2 as early as the middle of next month. 

It will take at least another six weeks for the eastern parts of the Northern Sea Route to open to shipping for ice-class ships. Vessels without ice-class routinely have to wait until August.

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