LNG supplies via the Northern Sea Route are gaining scale

Navigation has opened on the Northern Sea Route, and three tankers with Yamal LNG cargo have already taken the shortest route to Asia.

The third gas carrier, Nikolai Zubov, has entered the Northern Sea Route to Asia this navigation season. According to the AIS of the vessels, the tanker is currently passing through the Kara Sea. The arc7 ice class gas carrier is transporting cargo from Yamal LNG, obviously to China.

Another tanker, the Boris Davydov, has already passed more than half of the way along the Northern Sea Route — it entered The East Siberian Sea. And "Chris de Margerie, which opened the navigation season on June 27, is already approaching the coast of China — it entered the South China Sea south of Taiwan.

LNG supplies from the Russian Arctic are traditionally picking up pace at this time of year. Three gas carriers carry up to 300 million cubic meters in the form of LNG.

The main shareholder of Yamal LNG, Novatek, reported that in 2023 it delivered about 32 shipments of liquefied natural gas via the Northern Sea Route to Asia. As a result, the company accounted for more than half of the cargo flow of 36 million tons.

"Record figures of cargo traffic along the Northern Sea Route were achieved thanks to our partners — first of all, PJSC Novatek, whose LNG accounts for more than half of the cargo flow. PJSC Gazprom Neft, PJSC Lukoil, PJSC MMC Norilsk Nickel also played a major role in increasing the volume of traffic, which redirected their cargoes from the western to the eastern direction. As a result, we reached the target figure of 36 million tons before the New Year," said Alexey Likhachev, head of Rosatom.

All gas carriers of the Yamal LNG project traveling along the Northern Sea Route have the arc7 ice class and are unaccompanied by icebreakers.

At the same time, navigation was expected to begin earlier — in the spring. In December last year, Novatek launched the first stage of the second Arctic project Arctic LNG — 2, however, due to sanctions, it was unable to receive ice-class tankers.

Supplies to Asia via the shortest route can come both from Novatek and under long—term contracts from other shareholders of the Yamal LNG project - French TotalEnergies (20%) and Chinese CNPC (20%) and SRF (9.9%).

The Northern Sea Route is the shortest route to Asia for Yamal LNG. It takes three weeks instead of five when tankers carry LNG around Europe. This year, numerous tankers of a smaller ice class or without it received permission to enter Yamal LNG itself. And whether they will only pick up cargo for the previous route in the summer season or go along the Northern Sea Route is unknown. It is known that last year Gazprom sent the tanker Veliky Novgorod from the Baltic Portovaya complex along the Northern Sea Route. However, the ship was able to complete the route only with icebreaker wiring, and last season the company did not send cargo along the Northern Sea Route anymore.

Due to sanctions and rising demand, Asia is considered the most promising market for Russian LNG, but until recently, most of the cargo went to Europe.