US sanctions seven Russian LNG carriers

According to the US Treasury and the Department of State, the LNG carriers include the Palau-flagged Asya Energy, Everest Energy, and Pioneer, and the Panama-flagged North Air, North Mountain, North Sky, and North Way.

The Department of State said in a statement on August 23 that these new sanctions are targeting shipping companies that loaded and transported LNG from the Arctic LNG 2 project and Russia’s procurement of LNG tankers.

Ocean Speedstar Solutions

“In an attempt to circumvent U.S. sanctions on, and revitalize, Russia’s Arctic LNG 2 project, Russian companies have engaged in efforts to procure secondhand LNG tankers, predominantly through front companies in third country jurisdictions, to make up for a critical shortage of available tankers for the Arctic LNG 2 project,” the Department said.

Ocean Speedstar Solutions recently acquired LNG carriers Pioneer and Asya Energy.

The 2005-built and 2002-built LNG carriers have a capacity of about 138,000 cbm.

“Pioneer and Asya Energy entered Russian territorial waters in late July 2024 and proceeded to engage in a number of deceptive shipping practices, such as shutting off the vessels’ automatic identification system (AIS), as well as manipulating the vessels’ AIS to broadcast false locations,” the Department said.

“While producing a false AIS signature, Pioneer proceeded to the Utrenneye terminal at the Arctic LNG 2 project and was captured by commercial satellite imagery loading LNG from the Arctic LNG 2 facility from August 1 to August 3, 2024,” it said.

“Similarly, from August 9 to August 11, Asya Energy was captured by commercial satellite imagery loading LNG from the Utrenneye terminal at the Arctic LNG 2 facility,” the Department said.

Today’s actions demonstrate the Department’s “commitment to enforcing our sanctions on the project.”

The Department said that Zara Shipholding is the registered owner of Pioneer, while Ocean Speedstar Solutions is responsible for the management and operation of Pioneer and Asya Energy, as well as Everest Energy.

The 2003-built Everest Energy has a capacity of 138,000-cbm.

White Fox Ship Management

The Department said it is designating White Fox Ship Management, a UAE-based ship management company which manages four LNG carriers that have transshipped LNG from Russia’s Yamal LNG project, despite being originally intended for use with the Arctic LNG 2 project.

“The acquisition of these four vessels represents an expansion of Russia’s existing LNG fleet and export capacity, an expansion that we have committed to blocking,” it said.

“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,” the Department said

North Air, North Mountain, North Sky, and North Way are being identified as property in which White Fox has an interest, it said.

Built in 2023 and 2023 by Samsung Heavy, these LNG carriers have a capacity of 174,000 cbm.

Novatek China

Besides LNG carriers, the Department is designating Novatek China Holdings, a PRC-based company established in August 2023 involved in the implementation of a marketing program for LNG from the Arctic LNG 2 project.

Novatek China is being designated for operating or having operated in the management consulting sector of the Russian Federation economy, it said.

The Department is also designating Ekropromstroy, a Russia-based construction project management company used as a special purpose vehicle for the sale of equity stakes in U.S.-designated LLC Arctic LNG 2 to foreign project investors, it said.

Finally, the Department said it is designating Waterfall Engineering, a UAE-based company that provided gravity-based structure parts to US-designated LLC Arctic LNG 2 throughout 2023.

Waterfall Engineering is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of LLC Arctic LNG 2, it said.

GBS

Russian LNG exporter Novatek recently delivered the second gravity-based structure platform from its yard near Murmansk to the site of the Arctic LNG 2 project located on the Gydan peninsula, according to reports.

The second GBS left the Belokamenka yard under tow on July 26, and the installation of the unit at the Arctic LNG 2 site was expected to start in mid-August, Kommersant said in a previous report.

Novatek completed the second GBS despite sanctions by the US and the EU related to the Arctic LNG 2 project.

The first GBS left the Belokamenka yard in July last year and Novatek completed the installation on the underbase foundation on the seabed at the Utrenniy terminal in August.

This 330 meters long, 152 meters wide, and 90 meters high platform weighs 640,000 tonnes and is the heaviest object ever moved in the history of the global LNG industry, Novatek claims.

The train consists of topside modules with the equipment to produce and offload LNG and stable gas condensate, installed on a concrete gravity-based structure, which accommodates LNG and condensate storage tanks.

Arctic LNG 2

The first and second GBS each have a capacity of about 6.6 mtpa, while the Arctic LNG 2 project also previously included the construction of the third GBS.

The resource base of the Arctic LNG 2 project is the Utrenneye field located on the Gydan Peninsula in the YaNAO, about 70 km from the Novatek-operated Yamal LNG project across the Gulf of Ob.

Novatek is the LNG project’s operator with a 60 percent stake, France’s TotalEnergies owns 10 percent, while CNPC and CNOOC of China have 10 percent, each.

Japan Arctic LNG, a consortium of Mitsui & Co and Jogmec, owns a 10 percent stake in the project as well.

In January, TotalEnergies initiated a force majeure process on the Arctic LNG 2 project in Russia due to sanctions.

In March 2022, TotalEnergies said it would no longer provide capital and book proven reserves for the Arctic LNG 2 project due to the uncertainty created by the technological and financial sanctions on the ability to carry out the development.

After that, TotalEnergies wrote down its 19.4 percent stake in Novatek and withdrew the representatives of the company from the board of Novatek.