Russia added four new tankers to its dark fleet to circumvent Western sanctions and boost LNG exports. Previously servicing Oman's export facility, these vessels have begun loading fuel from the US-sanctioned Arctic LNG 2 project. The tanker Kosmos docked over the weekend at the blacklisted Saam floating storage unit (FSU) near Murmansk and later departed with a deeper draft, indicating it had taken on cargo. Three other former Omani vessels — Merkuriy, Orion, and Luch — have also picked up from Saam or are positioning to dock there.
Saam FSU stores fuel produced by the Arctic LNG 2 plant, which is only accessible to vessels with ice-breaking capability for most of the year. Shipping is the key bottleneck for Russia's fuel trapped in its northern region, and the extra tankers could allow the nation to expand its exports. Kosmos switched to the Russian flag earlier this year, changed its name, and shifted ownership to a little-known company. Merkuriy picked up fuel from Saam earlier this month and is currently in the Atlantic, likely heading to Asia; Orion is heading to the project, while Luch is also nearby.
These developments mean there are now at least 20 tankers ferrying LNG from sanctioned Russian projects. One of those was attacked in March and is out of service. Moscow is trying to capitalize on high LNG demand across Asia as the closure of the Strait of Hormuz chokes off a fifth of global supply and sends fuel prices higher. The four vessels display hallmarks of dark fleet vessels: they are older than typical LNG carriers still in service and had recently been transferred to companies not well known in the industry.
Kosmos changed ownership to Hong Kong-based Mighty Ocean Shipping Ltd. in February, Luch to Russia-based Abakan LLC in April, and Orion and Merkuriy to Celtic Maritime & Trading SA in February. The four ships were previously owned or managed by Oman Ship Management Co. Europe's rush to quit Russian pipeline gas has created a new energy vulnerability: growing dependence on US liquefied natural gas, as war-linked supply disruptions in the Middle East push the continent deeper into reliance on seaborne fuel.
Key Takeaways:
1. Russia added four former Omani LNG tankers to its dark fleet to boost exports from the US-sanctioned Arctic LNG 2 project.
2. Vessels Kosmos, Merkuriy, Orion, and Luch changed flags and ownership to little-known companies, loading from the Saam FSU near Murmansk.
3. Russia's sanctioned LNG tanker fleet now includes at least 20 vessels; one was attacked in March and is out of service.
4. As the Strait of Hormuz closure chokes off a fifth of global LNG supply, Russia is capitalizing on high demand across Asia.
5. Dark fleet vessels are older than typical LNG carriers and have recently been transferred to companies not well known in the industry.
