A tanker with a shipment of liquefied natural gas from a US-sanctioned export facility in Russia has docked at a Chinese terminal for the first time, the latest move by Moscow to expand fuel deliveries into Asia.
The Arctic Mulan vessel, which is carrying fuel from the blacklisted Arctic LNG 2 plant in Russia’s north, docked at the Beihai LNG terminal on Thursday, according to ship-tracking data compiled by Bloomberg.
The plant, initially sanctioned by US President Joe Biden’s administration, began exporting fuel on shadow fleet vessels last year, but none ever docked at an import terminal as buyers feared US retaliation.
The ship’s arrival at the PipeChina-operated LNG terminal comes ahead of Russian President Vladimir Putin’s visit to Beijing, which starts on Sunday, and at a time when the US has stepped efforts to end the Kremlin’s war in Ukraine.
Arctic LNG 2, led by Novatek PJSC, is key to Russia’s plans to triple LNG exports by 2030 — and tap new gas markets after a sharp drop in pipeline sales to major traditional buyers in Europe.
Other than pressuring India over its purchases of Russian oil, the US has so far held off on further tightening measures against buyers of Russian LNG as it seeks to broker a ceasefire in Ukraine. US President Donald Trump said face-to-face discussions with Putin in August were “.”
The shipment to a yet-to-be identified buyer, if it’s unloaded, will be unusual also because China’s imports of the super-chilled fuel have been this year amid higher domestic output and piped supply, including from Russia.
“The transaction comes in the context of nearly non-existent Chinese spot demand for LNG amid strong supply from other sources and sluggish demand,” said Jan-Eric Fähnrich, an analyst at Rystad Energy. “Thus, this move is not driven by need but designed to test Washington’s softened stance on Russian energy sanctions.”
“US President Donald Trump’s reaction will likely dictate whether this remains a one-off transaction, or it opens the door for a number of vessels currently eastbound via the Northern Sea Route,” he said.
Arctic Mulan loaded an LNG shipment from a floating storage unit in eastern Russia in early June, according to ship-tracking data. The fuel in storage was sourced from the Arctic LNG 2 facility. PipeChina, Novatek and Arctic LNG 2 did not respond to requests seeking comment.
Arctic LNG 2 produced eight cargoes last summer but was forced to shut in October as it failed to find buyers and as seasonal ice started to build-up around the facility. The vessels instead offloaded the fuel into storage sites in Russia.
This year, five ships have loaded at Arctic LNG 2, all currently headed east. A sixth vessel is approaching the sanctioned facility.
The Northern Sea route, the fastest gateway to Asia for cargoes from Russia’s Arctic, is open in the summer and closes in fall when ice hampers navigation.
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