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Moscow Tests Washington as Sanctioned Arctic LNG Cargo Reaches Chinese Port First Time
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![Photo of Vlad Litnarovych]( "Photo of Vlad Litnarovych")
A tanker carrying liquefied natural gas (LNG) from Russia’s sanctioned Arctic LNG 2 project has docked at a Chinese import terminal for the first time—a move likely to test Washington’s stance on energy sanctions as Moscow scrambles to push its fuel into Asia, Bloomberg reported on August 28.
The Arctic Mulan arrived at the Beihai LNG terminal in southern China, according to Bloomberg ship-tracking data. The cargo originated from the Arctic LNG 2 plant, operated by Novatek PJSC, which has been under US sanctions since 2023.
Until now, shipments from the facility were sent only to floating storage units off Russia’s coasts, as buyers avoided direct imports for fear of secondary sanctions.
Production at Arctic LNG 2 surged this summer, averaging about 15 million cubic meters per day in August, with a peak above 25 million late in the month, according to a person familiar with the operations.
The boost in output helped fill floating storage units in Russia’s Far East, from which Arctic Mulan picked up its cargo in June before heading to China.
Arctic LNG 2 is central to the Kremlin’s ambition to triple LNG exports by 2030 and offset collapsing pipeline sales to Europe.
But sanctions have left Moscow struggling to find consistent buyers, even while offering discounts of up to 40%. Last year, eight cargoes were produced but none reached end-markets, ending up stored instead.
This year, five tankers have already loaded LNG from the facility, with at least one more en route. Whether China unloads Arctic Mulan’s shipment remains uncertain, given Beijing’s soft LNG demand and steady pipeline supplies from Russia.
“The transaction comes in the context of nearly non-existent Chinese spot demand for LNG amid strong supply from other sources and sluggish demand,” said Jan-Eric Fähnrich, analyst at Rystad Energy.
“This move is not driven by need but designed to test Washington’s softened stance on Russian energy sanctions.”
Analysts say the outcome—and any US response—could determine whether this is a one-off delivery or the start of regular shipments via the Northern Sea Route, which remains ice-free in summer months.
Earlier, reports emerged that Russia’s once-dominant position in the European gas market continues to unravel, with Gazprom’s pipeline exports to Europe now plummeting to levels not seen since the early 1970s.
