Exports from Russia’s Yamal LNG production plant in the Arctic inched up in the first four months of this year compared with 2023 while European Union buyers continue to discuss slapping tougher sanctions on imports of the product.
Figures produced by the Center for High North Logistics (CHNL) show that there were 99 voyages made by the 15-ship specialised Arc7 fleet from the Yamal LNG project in the first four months of 2024, up from 96 a year ago and 89 in 2021.
CNHL said that in dwt terms LNG voyages accounted for 61.5% of the traffic on the Northern Sea Route (NSR) during January to April.
France proved the most popular destination with 34 voyages being tracked to and from its terminals in Dunkirk and Montoir-de-Bretagne, near St Nazaire, on the country’s west coast.
Some 32 voyages arrived and departed Belgium’s Zeebrugge terminal.
Another 18 were recorded for Spanish terminals in Bilbao, Ferrol and Huelva.
Russian cargoes are shipped into north-west Europe’s large LNG terminals for re-export to other destinations.
But 10 of the 99 voyages to and from Yamal LNG were tracked to Kildin Island, to the north of Murmansk, which Russia has been developing as a transshipment hub for its volumes since 2020.
CHNL managing director Kjell Stokvik said that with Russia short of ice-breaking tonnage, its large new NSR floating storage units sanctioned by the US and the EU considering banning transshipments of Russian LNG in its terminals, more use of the Kildin Island transshipment area might be expected this year.
The volume of LNG supplies from Russia to Europe or in transit through European countries in value terms has been estimated at about €12bn ($13.07bn) per year.
The European Commission has been discussing imposing sanctions on the Yamal LNG project along with a ban on transshipments in its terminals. But Russia has said it will seek ways to overcome any sanctioning of its LNG operations.
Russia has continued to move ahead with its now-delayed Arctic LNG 2 project this year.
Norway-based CNHL detailed that container ships, cargo vessels, bulkers and tankers made 45 voyages between the under-construction liquefaction project and centres such as Murmansk and Arkhangelsk in January to April.
The Nord University Business School department said the first train of Arctic LNG 2 began production in December 2023 but this has now been reduced due to export delays and full storage. A second train may start up by the end of 2024 but it sees the third as “probably suspended”.
CNHL figures also show little change in exports of crude oil from the Arctic Gate Terminal, voyages from Norilsk Nickel’s Dudinka port or gas condensate — which is not subject to sanctions — from Yamal’s Sabetta facility.
January to April is classed as the winter navigation period on the NSR.
Although Russia has committed to opening up the NSR for year-round navigation it has yet to send an LNG shipment eastbound through the Arctic this year, which would signal the start of sailings to Asia.
In 2023, a first LNG shipment left Yamal LNG on 4 June heading east through the NSR with ice-breaker support.
