Russia Expands Shadow Fleet Ahead of EU LNG Supply Ban

Russia is expanding its 'shadow fleet' of gas carriers to transport liquefied natural gas ahead of an impending EU supply ban. The country's gas carrier fleet has grown to 25 vessels over the past six months, according to data from maritime analytics firm Windward.

The majority of these tankers belong to shell companies linked to Russia and are registered in jurisdictions such as Dubai, Hong Kong, and Singapore. Novatek, which holds a leading position in the Russian LNG market, is expected to be significantly impacted by the EU's ban on supplies set to take effect on January 1, 2027.

Novatek's Siberian Yamal LNG plant and the Arctic LNG 2 project together account for more than 65% of Russia's total production, with another 30% coming from Gazprom's Sakhalin-2 project in the Far East. The main buyer of LNG from the Arctic LNG 2 project is China.

The expansion of the gas carrier fleet will allow Moscow to keep LNG shipments running once the EU's ban takes effect, following a model similar to that used for oil shipments, which now number over a thousand vessels.