U.S. Targets Russia’s LNG ‘Shadow Fleet’ in Sweeping New Sanctions Package

By Malte Humpert (gCaptain) –

The U.S. Department of State announced broad sanctions against Russia’s burgeoning LNG shadow fleet. LNG carriers had begun calling at the sanctioned Arctic LNG 2 project in the Russian Arctic earlier this month as first reported by gCaptain.

The measures include secondary sanctions against seven LNG carriers, including a number of newbuilds which have not yet carried sanctioned cargo but whose recent ownership structure suggested their involvement with the emerging dark fleet.

“The Department is designating multiple companies related to the Arctic LNG 2 project to further disrupt the project’s ability to produce and export liquefied natural gas (LNG), as well as the project’s ability to procure critical LNG carriers. These designations include entities involved in the illicit loading of LNG from the Arctic LNG 2 project in early August, the State Department said in press release.

The sanctions list now includes measures against LNG vessels Pioneer and Asya Energy. Both vessels called at Arctic LNG 2 over the past two weeks after turning off or spoofing their AIS transponder signals in an effort to abscond and travel 1,2000 nautical miles to load sanctioned cargo.

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A further vessel, Everest Energy is currently engaging in the same deceptive practice at similar coordinates in the Barents Sea transmitting a false AIS signal. All three vessels are operated by Ocean Speedstar Solutions out of India, which has also now been sanctioned.

Showing how determined the U.S. is in curtailing Russia’s new dark LNG fleet from the start, measures also include four additional LNG newbuilds, North Air, North Mountain, North Sky, and North Way. The vessels recently changed ownership to a Dubai-based entity White Fox Management FZCO and were rumored to eventually begin trading in sanctioned LNG. The Management company has also been sanctioned.

In an effort to hamper the sale of sanctioned LNG to lower-tier buyers in China, the latest U.S. measures also target Novatek’s China Holdings Company, an entity set up to market its product to buyers in the region.

Additionally it also sanctioned Zara Shipholding Company also affiliated with the shadow LNG trade and an Abu Dhabi-based engineering company, Waterfall Engineering for working with blocked Arctic LNG 2, though their specific involvement in the project remains unknown for now.

The U.S. has previously expressed its intention “kill the Arctic LNG 2 project” and the latest round of measures continue its efforts to interdict the trading of LNG.