Russia’s Shadow Fleet of Gas Tankers Expands Amid EU Restrictions
Russia is quietly expanding its shadow fleet of liquefied natural gas carriers to bypass impending European Union restrictions set to take effect in 2027. Over the past six months, at least eight secondhand LNG tankers were sold and redirected to carry Russian shipments, bringing Moscow’s specialized gas fleet to a total of 25 vessels.
The push to acquire specialized tankers follows the model Moscow established with its shadow oil fleet, which now exceeds 1,000 vessels operating outside Western insurance and regulatory frameworks. The expanded fleet is expected to play a crucial role in circumventing EU restrictions on Russian LNG imports.
New Vessels Join Russia’s Shadow Fleet
Four of the newly acquired gas carriers—named Kosmos, Orion, Merkuryy, and Luch—fly the Russian flag and have been moving cargoes from transshipment hubs handling sanctioned gas. Meanwhile, domestic shipbuilder Zvezda delivered its first tanker, the Aleksey Kosygin, which has transported gas from the sanctioned Arctic LNG 2 project since December.
Private producer Novatek leads the sector, with its Yamal plant and the sanctioned Arctic LNG 2 project generating more than 65% of Russia‘s total LNG output, alongside Gazprom’s Sakhalin-2 project, which accounts for about 30%. Non-sanctioned projects have relied on international carriers from companies like Dynagas, Mitsui OSK, and Seapeak.
Technical Barriers and Sanctions
Navigating Arctic routes requires ice-class vessels, creating further operational hurdles. Currently, China serves as the sole customer for gas from Arctic LNG 2, where shipments rely on 11 vessels averaging 10 years of age. Four additional ships are under construction at Zvezda, while delivery of six completed vessels remains blocked at South Korea’s Hanwha shipyard due to sanctions.
Technical barriers also remain high after French manufacturer GTT suspended its contracts with Russia in January 2023, leaving Moscow unable to easily source essential containment technologies. The EU’s ban on Russian LNG imports is expected to take effect in 2027, further complicating Russia’s efforts to maintain its gas exports.
Consequences of the Shadow Fleet
The expanded shadow fleet has significant implications for global energy markets and international relations. The EU’s decision to phase out Russian LNG imports will likely lead to increased tensions between Moscow and Brussels. Meanwhile, China’s reliance on Russian gas supplies could strengthen its position as a key player in global energy politics.
As the situation continues to unfold, it remains to be seen how Russia will adapt to the changing landscape of international sanctions and restrictions. One thing is certain: the expansion of Russia’s shadow fleet of gas tankers marks a significant shift in the country’s approach to energy exports and its relationships with key trading partners.
Original Article: Russia Secretly Assembles Shadow Fleet of Gas Tankers as Europe Prepares Complete Ban — United24Media