Russia Expands Shadow LNG Fleet Ahead of EU Ban
Russia is expanding its shadow fleet of liquefied natural gas (LNG) carriers as it prepares for stricter European Union sanctions that will take effect in 2027. The country has added eight second-hand LNG carriers and two newly built vessels from the Zvezda shipyard to help continue exports.
Unlike oil tankers, LNG carriers are highly specialized and expensive to build, making the expansion of a shadow fleet far more challenging. However, Russia's decision comes as sanctions on its energy exports continue to increase, with Europe tightening restrictions on Russian fossil fuel imports.
The European Union will stop importing Russian LNG when the ban takes effect in 2027, which will impact major projects such as Yamal LNG and Arctic LNG 2. Novatek dominates Russia's LNG industry, accounting for more than 65% of production, followed by state-owned energy company Gazprom.
Russia has also started deploying domestically built LNG carriers, with the first vessel, Aleksey Kosygin, beginning cargo transportation from the Arctic LNG 2 project after delivery to state shipping company Sovcomflot in December. The expansion of the shadow LNG fleet presents technical hurdles due to the specialized nature of LNG carriers and the difficulty in acquiring suitable vessels.