Over the weekend, the latest addition to Russia’s developing LNG shadow fleet emerged as the LNG carrier Everest Energy made its way to the Koryak floating storage unit (FSU) near Kamchatka to transfer super-chilled gas from the sanctioned Arctic LNG 2 project. Everest Energy traveled through Arctic waters without a valid permit and under a suspended registration from the flag state Palau.
The Koryak FSU, towed from the Hanwha Ocean shipyard in South Korea, had been idle since its arrival in the North Pacific in August 2023. However, with the sister barge Saam FSU now operational, the shadow fleet’s activities are becoming clearer. Saam FSU, located near Murmansk, has received two cargoes earlier this month, establishing the western transshipment point.
Source: Shipatlas
After two months of operations, Arctic LNG 2 has managed to load five cargoes, with a sixth in progress, but has yet to deliver any, indicating difficulties in finding buyers for its sanctioned product. The project is primarily owned by Novatek, Russia’s largest LNG producer.
The Mulan LNG carrier, which was sanctioned by the US earlier this month, approached the Utrenniy terminal on September 22, 2024, where it remains. Of the six loadings, totaling about 770,000 cubic meters of LNG, none have reached customers, highlighting the challenges Arctic LNG 2 faces.
The transfer from Everest Energy to Koryak FSU marks the first cargo to leave the Arctic, while other shipments remain on hold aboard Saam FSU and various LNG carriers. Saam FSU has reached 75 % capacity with two transfers received. Additionally, the New Energy vessel is returning from the Mediterranean after failing to transit the Suez Canal due to its flag being suspended. Its cargo was originally taken from Arctic LNG 2 nearly two months ago. Another shipment from Asya Energy, currently traveling through the Arctic Northern Sea Route, is expected to be offloaded at Koryak FSU.
To keep up with current production levels, Arctic LNG 2 will need to dispatch shipments every 7-10 days. Without regular discharges starting soon, the project risks reaching the limits of its temporary storage capacity. The next few weeks will be crucial in determining whether the project can consistently find buyers for its sanctioned LNG.
