The Arctic LNG 2 project by Russia's Novatek (NVTK.MM) is subject to Western sanctions over Russia's conflict with Ukraine. The project had been due to become Russia's largest LNG plant with eventual output of 19.8 million metric tons per year of LNG from three trains.
Novatek may be forced to scale back the project following the sanctions, but a tanker under U.S. sanctions that picked up a cargo from Arctic LNG 2 has been found to be carrying out a ship-to-ship transfer, suggesting Moscow is managing to continue some exports from the project.
Below are the companies designated by the U.S. state department, as well as the vessels they own or manage, according to data from Equasis and Kpler:
SHIPPING COMPANIES THAT LOADED AND TRANSPORTED LNG FROM ARCTIC LNG 2:
The U.S. state department said the Pioneer and Asya Energy vessels had entered Russian waters in late July, and had shut off and manipulated their automatic identification system (AIS) to broadcast false locations.
While producing a false AIS signature, Pioneer and Asya Energy loaded LNG from the Arctic LNG 2 facility on Aug. 1-3 and 9-11 respectively, said the state department, citing commercial satellite imagery.
Ocean Speedstar Solutions and Zara Shipholding did not immediately respond to a request for comment.
TARGETING RUSSIA'S PROCUREMENT OF LNG TANKERS:
The four vessels have transshipped LNG from Russia's Yamal LNG project despite being originally intended for Arctic LNG 2 use, said the U.S. state department, adding that it is committed to blocking the expansion of Russia's existing LNG fleet.
"Further, this transshipment of LNG by vessels with obfuscated ownership could eventually help Russia circumvent EU restrictions prohibiting the transshipment of Russian-origin LNG through European ports," it said.
Reuters could not find contact information for White Fox Ship Management.
TARGETING ADDITIONAL COMPANIES RELATED TO ARCTIC LNG 2:
The state department also targeted Novatek China Holdings Co Ltd, a China-based firm established in August 2023 to market LNG from Arctic LNG 2.
It also designated Russian construction firm Limited Liability Company Ekropromstroy used as a special purpose vehicle to sell equity stakes in Arctic LNG 2, and UAE-based Waterfall Engineering that provided parts to Arctic LNG 2 in 2023.
TARGETING THE YAKUTIA LNG PROJECT:
The U.S. in addition designated several Russian-based companies involved in the development of the future Yakutia LNG project, one of the largest prospective LNG production projects in Russia. They include LLC Power of Yakutia, LLC Yakutstroiproekt and LLC Liquefied Natural Gas Yakutia.
