Second Russian ‘Shadow Fleet’ Tanker Docks at Sanctioned Arctic LNG Project As Moscow Struggles to Find Buyers

A year after Russia’s flagship liquefied natural gas project, Arctic LNG 2, loaded its first cargo, buyers remain elusive. 

Despite the ongoing difficulties in securing customers this summer’s second loading is currently under way. The LNG carrier Voskhod (formerly North Mountain) docked at the Utrenniy terminal late on July 16. It follows last month’s visit by LNG carrier Iris (formerly North Sky). Both vessels operate with an Arc4 ice-class allowing for early summer operations in light and medium sea ice conditions along Russia’s Northern Sea Route.

Following news of the ramping-up of production in May and reloading activity involving two FSUs in June, industry insiders speculated that the project had lined up a buyer for this summer. But no customers have thus far emerged. More than a million cubic meters of LNG remain unsold and afloat aboard FSU Saam and Koryak and a half dozen carriers. 

With Iris and Voskhod the so-called shadow fleet continues to grow, though neither vessel has thus far openly engaged in deceptive practices. Last year’s dark fleet ships repeatedly turned off or spoofed their AIS signal in attempts to reach the Utrenniy terminal undetected.

Voskhod left its familiar operating area on July 14 passing to the south of Novaya Zemlya. With largely ice-free waters the vessel maintained around 13 knots into Ob Bay where Arctic LNG 2 is located.

Similar to Iris and several other former North-Series carriers, Voskhod spent much of the last six months in a holding pattern in the eastern Barents Sea, interspersed by brief visits to Murmansk, likely for resupply and provisioning. 

It appears that Russia has abandoned efforts to hide export activity involving the plant. Last year several vessels traveled to the Arctic LNG 2 without valid Northern Sea Route permits and without appearing in the NSR’s daily logs. In contrast, both Iris and Voskhod display valid permits on the official administration website and their courses and destinations have been logged in the daily register.

Since picking up cargo at Arctic LNG 2 on June 28, Iris has returned to its holding location south of Kolguyev Island in the Barents Sea in proximity of several other sanctioned LNG carriers. 

At current production rate Novatek, the majority owner of Arctic LNG 2, appears to have sufficient floating storage available for another two months. Several non ice-class LNG carriers, part of last year’s shadow fleet, are being serviced in a Chinese yard, including East Energy, Sputnik Energy, and Nova Energy and are expected to reenter into service in the weeks to come. Others, including Arctic Metagaz and Zarya, remain on standby in the Barents Sea.

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