Second LNG tanker from US-sanctioned Russian plant arrives in China on Saturday

Second LNG tanker from US-sanctioned Russian plant arrives in China on Saturday

A second tanker carrying liquefied natural gas (LNG) from a US-sanctioned Russian export plant has arrived in China, signaling a continued expansion of Beijing's energy ties with Moscow. The Voskhod tanker, which is carrying a cargo from the Arctic LNG 2 plant, landed at the Beihai import terminal in China’s south on Saturday, according to ship-tracking data compiled by Bloomberg [1].

The first shipment from Arctic LNG 2 made it to China in late August, coinciding with a visit by Russian President Vladimir Putin. During this visit, the two nations cemented their energy relationship with a series of gas pipeline agreements. Arctic LNG 2 had faced issues in finding buyers after it was blacklisted by US President Joe Biden’s administration in 2023 [1].

At least three more vessels from Arctic LNG 2 appear to be on their way to China, with ship-tracking data showing that other shipments may take longer to reach due to ice buildup in the Northern Sea Route. This makes it difficult for traditional vessels to traverse the shorter route to Asia [1].

China and Russia have signed an agreement to build the Power of Siberia 2 pipeline, signaling long-term gas ties between the two states. However, the financial bottom line for Novatek-operated Arctic LNG 2 remains deeply negative and besieged by sanctions-related problems [2].

The recent uptick in loadings from Arctic LNG 2 suggests that Novatek, the Russian operator of the project, is planning up to 30 shipments over the next four months. The project, despite the recent flurry of ship loadings, continues to face an overwhelmingly negative outlook overall for the next few years at least [2].

China's first-ever cargo from Russia’s sanctioned Arctic LNG 2 plant last week looks like the start of a temporary unfreezing for the embattled flagship Russian Arctic LNG project. However, a longer-term shift in appetite for Russian gas from Beijing will do little to thaw the overwhelmingly negative outlook for Novatek [2].

The deliveries will arrive amid a series of rapidly evolving geopolitical agreements that could potentially reshape global energy flows. China’s increasingly long-term gas plans with Russia, confirmed on Tuesday with the signing of the long-delayed agreement to build the Power of Siberia 2 pipeline, point to a growing strategic relationship over the next 30 years [2].

The deal, however, will not offer much immediate respite for the Arctic LNG 2 project, which despite the recent flurry of loadings continues to face an overwhelmingly negative outlook overall for the next few years at least [2].

The current loading rates indicate an effective capacity of only about 3m tonnes per year, far less than the design capacity of 13.2m tonnes for the two trains. The Siberian northern sea route nominally gives Novatek an annual operating window from the middle of August to December 1, just over three months. However, ice conditions can be unpredictable, and several ALNG2 ships have recently been challenged in the East Siberian Sea [2].

While Novatek is making the most of the shift in Chinese willingness to buy the sanctioned cargoes, most of the ships sailing through the northern sea route will likely have to return west, providing another logistical headache for Novatek [2].

The arrival of the second LNG tanker from Arctic LNG 2 in China highlights the complex interplay between geopolitics and energy logistics. As China and Russia continue to strengthen their energy ties, the implications for global LNG markets and investment decisions on future LNG export terminals remain to be seen [1][2].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-06/another-us-sanctioned-russian-lng-shipment-lands-in-china
[2] https://www.lloydslist.com/LL1154683/China%E2%80%99s-warming-view-of-Russian-gas-won%E2%80%99t-unfreeze-Arctic-LNG-2-problems