US “second punch” to Russia’s LNG project in the Arctic

The United States has sanctioned two more ships and two shipping companies involved in the Arctic LNG 2 project in the latest effort to block Russian liquefied natural gas (LNG) exports from the Arctic.

The U.S. Treasury Department’s Office of Foreign Assets Control added the Mulan and New Energy to the sanctions list on Sept. 5, after adding the first seven vessels in late August. India-based companies Gotik Shipping Co. and Plio Energy Cargo Shipping Opc were also sanctioned, the Treasury Department said in a statement on Sept. 5.

Analysts believe the US efforts are having a significant impact on Russia's plans to export LNG from its new Arctic facility. Photo: Riviera

The US believes that the LNG tanker New Energy (85,600 dwt) loaded cargo less than 2 weeks ago on August 25, through a ship-to-ship transfer (STS) mechanism with the Pioneer tanker (77,700 dwt).

The US State Department said the New Energy used deceptive practices to conceal its actions, including turning off its AIS transmissions. The ship was listed as owned by Gotik Shipping of India and managed by Plio Energy Cargo Shipping.

The second vessel sanctioned on September 5 was the Mulan (44,737 dwt), also managed by Plio. Meanwhile, the Pioneer was among seven vessels blacklisted by the US on August 23. All three vessels – New Energy, Mulan and Pioneer – are managed by the same Indian company and are all registered in Palau.

These sanctions, like a "double punch", continue to hit Novatek's Arctic LNG 2 project, which was first blacklisted by the US late last year.

In an effort to cripple the project before it begins production, the US last year targeted two floating LNG storage units (FSUs) designed to support the project as well as companies providing engineering services to support its development. Analysts believe Washington’s efforts are having a significant impact on Moscow’s plans to export LNG from the new facility.

“The United States government will continue to respond to any efforts to sanction Russia’s LNG 2 project or expand its energy capacity with a swift response,” State Department spokesman Matthew Miller said in a statement. “Together with our G7 partners and other allies, we remain steadfast in preventing Russia from exploiting our energy resources for political gain.”

The sanctions come as Russia has been working for months to develop a “shadow fleet” to transport LNG in the same way it does to transport crude oil and other energy products.

Such “shadow fleet” ships are said to have unclear ownership, unknown insurance companies, and engage in practices such as concealing their location by turning off or manipulating automatic vessel identification systems.

Minh Duc (According to Maritime Executive, Bloomberg)

Source: https://www.nguoiduatin.vn/cu-dam-boi-cua-my-vao-du-an-lng-cua-nga-o-bac-cuc-204240906110213647.htm