Sovcomflot Gets First Russian Tanker for Arctic LNG 2

Sovcomflot PJSC, Russia’s largest shipping company, received the first domestically built ice-class tanker to expand the fleet of ships hauling super-chilled gas from the blacklisted Arctic LNG 2 project year-round.

The Rosneft PJSC-led Zvezda Shipbuilding Complex in Russia’s Far East transferred the Alexey Kosygin – the lead vessel in a series of advanced ice-class ships being built at the facility for Arctic LNG 2 – to Sovcomflot on Wednesday, according to a website statement from Rosneft. 

The Alexey Kosygin, sanctioned by the US, is key for the project above the Arctic Circle to be able to ship cargoes of liquefied natural gas via the Northern Sea Route when ice thickens during autumn and winter navigation. The bulk of tankers servicing Arctic LNG 2 aren’t ice-class, and Western sanctions have left little leeway to expand the fleet. The delivery of Alexey Kosygin was initially expected in early 2023, but restrictions on equipment supplies delayed that.

Novatek PJSC-led Arctic LNG 2 is crucial for Russia’s ambition to triple production of the supper-chilled fuel by the end of the decade. That plan is threatened by international sanctions, but China’s decision to take LNG from the plant could help revive the goal.

The Asian nation started importing fuel from Arctic LNG 2 through its remote Beihai terminal in August, with about 20 cargoes offloaded from the Russian plant as of mid-December. Nevertheless, Arctic LNG 2 had to cut output as winter ice complicates exports, and until now there was only one identified Russian shadow fleet tanker of the advanced Arc-7 class that can navigate frozen waters year-round – the Christophe de Margerie.

Sovcomflot expects to receive two more LNG tankers from Zvezda next year, Interfax reported, citing Chief Executive Officer Igor Tonkovidov