The North-series vessels North Sky, North Air, North Mountain, and North Way were renamed to Iris, Buran, Voskhod, and Zarya on or around April 17th along with a change in registration from Panama to Russia.
Last summer several LNG carriers traveling to the sanctioned Arctic LNG 2 project engaged in deceptive practices deactivating or spoofing their location. The reflagging of the four vessels may allow for similar practices in the future.
“Russia can decide to be relatively lax about enforcing AIS position reporting, in Russian waters at least, and also offer state-backed insurance,” speculates Kjell Eikland, managing director of data provider Eikland Energy.
The move may suggest preparations by Russian firm Novatek to launch a new attempt to lift cargoes from the sanctioned Arctic LNG 2 project. All four vessels carry an Arc4 classification, a medium level of ice-strengthening, key to reaching the Utrenniy terminal in icy conditions.
“Locally still quite wintery there, though, and with unbroken ice. Early June is absolutely possible with ALNG2 definitely ready with two GBSs [production lines],” Eikland confirms.
Launched in 2023 and 2024 the vessels were built by Samsung Heavy Industries for Japanese operator NYK against charters with Novatek’s Arctic LNG 2 project. They have since been transferred to Dubai-based White Fox Ship Management. All four vessels and White Fox were included in the August 2024 round of economic sanctions by the U.S.
Novatek was forced to temporarily mothball Arctic LNG 2 last October as sea ice began to block shipping lanes. The company also continues struggling to find buyers for around one million tonnes of LNG shipped during a two-months period beginning in August 2024.
In recent weeks production levels at the plant have picked up with gas flaring continuing throughout all of April. The meaning of the uptick in activity remains to be seen. Some industry analysts suggest the restart of Train 1 and commissioning of Train 2 in recent weeks sets the stage for new shipments this summer. Any such effort would likely rely on the four renamed North-series vessels.
But without substantial changes in the sanctions environment or new ways to obscure the origin of sanctioned cargoes Novatek may continue to struggle finding buyers.
“While Russia could be testing the waters, Kpler Insight does not expect a material production ramp-up under current sanctions and limited buyer appetite,” confirms Ana Subasic, gas and LNG Analyst at Kpler, a data and analytics firm for commodity markets.
The ongoing gas flaring may simply be part of maintenance and commissioning procedures.
“Train 1 is expected to shut down once onsite storage is full, while Train 2—despite nearing technical readiness—may also be idled post-commissioning unless there is a meaningful easing of sanctions or emergence of new circumvention methods,” says Subasic.
