HomeNewsLNG entities under U.S. sanctions to curb Russia's Arctic LNG 2 project

LNG entities under U.S. sanctions to curb Russia's Arctic LNG 2 project

9/6/2024

The U.S. has imposed sanctions on hundreds of entities and individuals for supporting Russia's war effort in Ukraine, including companies supporting the development of Russia's Arctic LNG 2 project and its shipment of liquefied natural gas (LNG), as well as other future energy projects.

The Arctic LNG 2 project by Russia's Novatek 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.

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:

The U.S. state department said on Aug. 24 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.

In another round of sanctions on Sept. 5, the U.S. state department said New Energy used deceptive shipping practices, including shutting off its AIS, to load cargo from Arctic LNG 2 via a ship-to-ship transfer with the Pioneer vessel on Aug. 25.

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.

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 United States 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.

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