Russia’s emerging LNG shadow fleet is experiencing significant delays, with no completed deliveries over six weeks since the LNGC Pioneer transported the first cargo in early August. Over the weekend, the LNGC Asya Energy visited the Arctic LNG 2 project again to load the fifth batch of liquefied natural gas (LNG).
US sanctions and the suspension of ship registrations by Palau are effectively hindering Arctic LNG 2’s export activities. The destinations for the first four cargos are still unresolved, and the destination for the fifth cargo remains undetermined.
The first cargo, which was lifted by LNGC Pioneer and transferred to New Energy near the Suez Canal, now seems set to return to the Russian Arctic after a six-week voyage across the North Sea, Eastern Atlantic, and the Mediterranean. After a ship-to-ship transfer at the end of August, both Pioneer and New Energy lingered near the northern end of the Suez Canal for over two weeks. New Energy is now making its way back towards Murmansk, possibly to unload its cargo into the Saam FSU storage barge.
Source: Shipatlas
This delay means that nearly two months will have passed before any cargo can be offloaded, leading to a boil-off loss of 10-15 %. Older steam turbine carriers experience daily cargo losses of 0,15-0,25 %.
The second and third cargos from Arctic LNG 2 are also in limbo. After loading on August 10, Asya Energy partially traveled down Norway’s coastline before returning to Kola Bay, near Murmansk, where it idled for a week. Everest Energy later loaded the third cargo and discharged it into the Saam FSU about a week later. Asya Energy also discharged its cargo into the FSU, and both cargos are waiting for further transport, possibly by North Air, a sanctioned ice-class LNG carrier nearby.
After unloading at Saam FSU, both Everest Energy and Asya Energy returned to Arctic LNG 2 for the fourth and fifth cargos. Everest Energy recently traversed the Northern Sea Route and passed through the Bering Strait. Its destination, likely in Asia, remains unknown but might involve discharging into another floating storage barge, the Koryak FSU, positioned by Novatek in Kamchatka.
Asya Energy might follow a similar route or make another drop-off at Saam FSU, though this would require pickup by North Air or another vessel due to the near-capacity status of the storage barge after two deliveries.
The use of Saam FSU provides Arctic LNG 2 some flexibility for arranging further transport. However, with five batches of LNG still undelivered, the project faces considerable logistical challenges. These difficulties are expected to worsen as sea ice returns, restricting the use of current carriers, and ice-capable vessels ordered for the project remain at South Korea’s Hanwha shipyard.
