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China continues to supply the Arctic LNG-2 project despite sanctions

08 january 2024

China continues to deliver prefabricated modules for Novatek's Arctic LNG-2 project in Yamal, Russia. Two ice-capable heavy lift vessels, Audax and Pugnax, recently departed China with a cargo for the project that was put under sanctions by Western countries.

A winter transit of the Northern Sea Route (NSR) routinely takes around three weeks and both vessels are estimated to arrive in Murmansk in mid-February, High North News reported.

The transport of equipment used for the production of liquefied natural gas by European companies has been banned under the sanctions policy. But it is unclear to what degree the ban has been enforced or if the sanctions apply to the vessels’ operator. Audax previously completed a winter voyage in February 2022, also carrying modules for Novatek.

Russia is actively trying to substitute Western-made components and machinery needed for its infrastructure projects that were prohibited to be exported to the country after the beginning of Russia-Ukraine war. Russia’s cooperation with China remains key to completing construction of the second and third stages of the Arctic LNG 2 project.

Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished