August 5

Satellite Images Show LNG Ship at Sanctioned Russian Plant

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Images of the Arctic LNG 2 export project taken by the Sentinel 2 satellite.Source: Sentinel 2

A large vessel docked at Russia’s liquefied natural gas export plant in the Arctic last week, according to satellite images, in what appears to be the first move to circumvent US sanctions against the facility.

Novatek PJSC, which leads the facility, has not commented on the arrival of a vessel, and the images, taken by the Sentinel 2 satellite, do not confirm LNG is being loaded.

However, the ship is a roughly 280-meter (919-foot) long vessel docked at the Arctic LNG 2 facility around Aug. 1, almost exactly the length of a typical LNG vessel.

The satellite image also shows a visible flame at a nearby facility, which likely means that it is flaring gas and could be ramping up LNG production.

“There is no doubt this is an LNG carrier,” said Mehdy Touil, an LNG lead specialist at Calypso Commodities. “The large flare indicates a restart of the facility.”

Novatek didn’t respond to a request for comment outside of normal business hours.

Read more: Russian Arctic LNG 2 Plant Cuts Runs to 5-Month Low on Sanctions

The US imposed sanctions in November to prevent the start of exports from Arctic LNG 2. While the facility began production in December, no LNG has been shipped as restrictions kept foreign companies away and stopped delivery of the specialized, ice-ready carriers.

That has made gas a key area where Western sanctions have had immediate, tangible impact on Russia’s wartime economy. It has also encouraged Russia to begin working to create an alternative fleet of vessels to carry its gas — just as what happened in oil.

European Union sanctions, set to kick in next year, are intended to limit port access and transshipment options for Russian LNG cargoes.

The ship visible on satellite images does not register on tracking data gathered by Bloomberg, a common feature of “dark fleet” vessels, which frequently spoof their locations elsewhere or switch off transponders to avoid being traced. It was first spotted by maritime website gCaptain.

A number of vessels has been amassed by an unknown company in Dubai, characteristic of dark-fleet ships and similar to what Moscow has done in the oil market.

Warmer summer weather has removed the ice from the waterway around Arctic LNG 2, according to the satellite data, which would make it easier for traditional LNG vessels to traverse.

(Updates with upcoming EU restrictions in ninth paragraph)

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