Sanctioned Russian Tanker Forced To Store Cargo After Failed 4-Month Worldwide Search For Buyers

A Russian tanker carrying liquefied natural gas (LNG) has offloaded its cargo into a storage unit in Kamchatka after failing to find a buyer during a four-month journey around the world.

The tanker, Pioneer, transported LNG from Russia’s Arctic LNG 2 facility, a project heavily sanctioned by the United States.

Tracking data revealed that Pioneer docked alongside the Koryak floating storage unit are also under U.S. sanctions, adding to the challenges of finding buyers for the LNG.

The Pioneer began its journey in August by loading LNG from the Arctic LNG 2 facility, located on the Gydan Peninsula. Satellite images showed the tanker loading cargo while reportedly using misleading location data to hide its activities.

The tanker then travelled through Northern Europe, the Mediterranean, the Suez Canal, the Indian Ocean, and along China’s east coast, searching for a buyer.

Despite this extensive journey, no buyer was willing to purchase the LNG, fearing the consequences of violating U.S. sanctions. The LNG is now stored in Kamchatka and will remain there until a customer can be found.

The Arctic LNG 2 project, Pioneer, and other vessels like Asya Energy and Everest Energy were sanctioned by the U.S. in August.

Their registered owners, Zara Shipholding and Ocean Speedstar Solutions, were also targeted. These measures have been taken to restrict Russia’s energy exports.

Since the sanctions were imposed, shipments from Arctic LNG 2 have been made using “dark fleet” vessels, but none have reached foreign ports.

Instead, they are being stored at floating units in Russian or European waters, as buyers are hesitant to engage in transactions involving sanctioned LNG.

In October, the Arctic LNG 2 project had to temporarily stop production due to a lack of buyers and suitable vessels capable of navigating the icy Arctic waters. This facility was expected to expand Russia’s share in the global LNG market from 8% to 20% by 2030-2035.

Russia is building icebreaker tankers to address these issues and ensure that LNG can be transported in harsh Arctic conditions.

Ship-tracking data shows that the first such tanker is currently undergoing sea trials.

The U.S. sanctions on Arctic LNG 2 and the vessels involved in its shipments have made it increasingly difficult for Russia to deliver LNG to international markets.

Novatek PJSC, the company leading the Arctic LNG 2 project, has not commented anything on the matter.

References: Bloomberg, OilPrice

Source: Maritime Shipping News