A Chinese state-run terminal appears to have received a shipment of liquefied natural gas (LNG) from Russia’s Arctic LNG 2 plant, which is under U.S. sanctions. If confirmed, this would mark the first such delivery amid Moscow’s efforts to sustain energy exports, Bloomberg notes.
The First Delivery: What Happened and Why It Matters
According to vessel-tracking data, the LNG carrier Arctic Mulan berthed at the Beihai LNG terminal on Thursday and departed on Friday with a smaller draft: 8.7 meters versus 9.8 meters before arrival, indicating that part of the cargo was unloaded. A trader familiar with the terminal confirmed that some LNG was discharged from the vessel.
This could be the first successful delivery associated with the Arctic LNG 2 project, which has struggled to find buyers since it was sanctioned by the administration of President Joe Biden in late 2023. The development is notable because Chinese state-owned companies generally avoid fuel originating from vessels or facilities under U.S. sanctions.
Route, Fleet, and Attempts to Sidestep Restrictions
Tracking data show that Arctic Mulan loaded LNG in early June from a floating storage unit in Russia’s Far East; that fuel had been sourced from Arctic LNG 2. Bloomberg estimates that at least four other vessels linked to the project are heading to Northeast Asia, while another is currently alongside the plant.
On August 18, the Northern Sea Route Administration posted a notice indicating that one of the tankers was bound for China with an estimated arrival in Beihai on September 4; the notice was later removed. In total, five LNG carriers that recently loaded at Arctic LNG 2 are already in or sailing toward Northeast Asia; another appears to be loading at the facility now. For the market, the ships’ movements are a test of whether the project can establish logistics around U.S. sanctions.
Politics, Market, and the Unknowns
The arrival of Arctic Mulan coincided with preparations for President Vladimir Putin’s visit to Beijing this Sunday for meetings with Xi Jinping and other leaders—against the backdrop of intensified efforts by the administration of President Donald Trump to end the war in Ukraine. Official Beijing is keeping its distance for now: Chinese Foreign Ministry spokesperson Guo Jiakun said at a Friday briefing that he was not aware of the situation.
Arctic LNG 2 is part of the Kremlin’s plan to triple Russia’s LNG exports by 2030. After European importers cut purchases, Moscow has been seeking new buyers in Asia. At the same time, Bloomberg News was unable to identify the buyer of the cargo delivered by Arctic Mulan, and PipeChina did not respond to requests for comment.
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