A tanker transporting liquefied natural gas (LNG) from Russia’s US-sanctioned Arctic LNG 2 project has arrived at a Chinese terminal, marking the first direct delivery of its kind.
The vessel, Arctic Mulan, docked at the Beihai LNG terminal on Thursday, according to Bloomberg data. This development highlights Moscow’s continued push to expand its fuel deliveries to Asia after pipeline gas sales to Europe collapsed.
It also demonstrates how shadow fleet shipments are now entering mainstream Asian energy markets, despite initial concerns among buyers about potential US retaliation.
Arctic Mulan docks with Russian LNG in China
The Arctic Mulan loaded its cargo from a floating storage unit in eastern Russia in early June, with fuel originating from the blacklisted Arctic LNG 2 facility in northern Russia.
The terminal delivery on Thursday is the first time fuel from the sanctioned project has reached an official Chinese import hub.
Arctic LNG 2, led by Novatek PJSC, is a cornerstone of Russia’s strategy to triple LNG exports by 2030. The project’s capacity and its planned role in diversifying gas flows away from Europe make it one of the Kremlin’s most important energy assets.
However, the plant has been under US sanctions since its early operational stages, when President Joe Biden’s administration imposed restrictions on technology, investment, and trade linked to the facility.
Sanctions pressure and US diplomatic stance
The US has sought to block Arctic LNG 2’s expansion through sanctions but has stopped short of penalising buyers of Russian LNG. Washington has prioritised maintaining diplomatic leverage during negotiations on a ceasefire agreement in Ukraine.
While India has faced political pressure from the US regarding its purchases of Russian oil, LNG trade has not yet faced the same level of scrutiny.
In August, US President Donald Trump described his face-to-face discussions with Russian President Vladimir Putin as “extremely productive”.
This meeting came amid continued global debate over the enforcement of sanctions, the resilience of Russian energy exports, and the impact on international gas markets.
Output and export challenges for Arctic LNG 2
The Arctic LNG 2 plant began producing fuel last year, exporting eight cargoes during the summer months of 2023. However, the facility was forced to shut in October due to a lack of buyers and the onset of seasonal ice build-up around its infrastructure.
The unsold cargoes were diverted into domestic Russian storage units, highlighting the challenges faced in finding international customers under sanctions.
The recent delivery to China through Arctic Mulan signals that Russia is increasingly finding ways to bypass earlier obstacles.
By shifting volumes onto floating storage units and using vessels outside traditional shipping networks, Moscow has been able to push sanctioned fuel closer to mainstream energy trade flows.
Russia’s LNG ambitions and Asia’s role
Russia’s long-term plan to triple LNG exports by 2030 depends on projects like Arctic LNG 2 operating at scale and securing stable buyers. With Europe no longer a major market, Asia has become the primary focus.
China, already the world’s largest LNG importer, has taken on a more significant role as Russia seeks to offset lost European sales.
The successful docking of Arctic Mulan at Beihai may encourage further direct deliveries to Asian terminals. This would not only strengthen Russia’s foothold in Asia’s energy markets but also test how far the US is willing to enforce restrictions on LNG trade.
The shipment shows how Russian energy exporters are working to secure demand in Asia while navigating the challenges posed by sanctions, logistical barriers, and shifting global energy politics.
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