LNG Carriers Shift Away from Arctic Routes as Winter Nears

Ships carrying Russian liquefied natural gas (LNG) to Asia are returning to the longer routes around Africa's Cape of Good Hope rather than those along the Arctic shore as the winter season begins, LSEG data showed on Thursday.

Russia's new Arctic LNG 2 project also lacks enough ice-class gas carriers to continue navigation along the Northern Sea Route, although some such tankers still sail it.

According to LSEG data, the conventional gas tanker LNG Megrez loaded at Yamal LNG plant on Oct. 2 and started its voyage around Africa to Asia with arrival set for Nov. 13.

Seapeak Yamal, which loaded gas from the plant on Oct. 9, is also set to travel past the southern tip of Africa judging by the indicated arrival date of Nov. 23. No final destination for the vessels has been designated yet.

The Velikiy Novgorod tanker was loaded at Gazprom's Portovaya plant on the Baltic Sea on Oct. 3 and is set to dispatch the cargo on Nov. 21.

Russia has declared traffic restrictions due to ice formation at the port of Sabetta, which services the Yamal LNG plant, starting from Oct. 22.

Attacks launched by Yemen's Iran-aligned Houthi group on commercial ships at the southern end of the Red Sea have prompted shipping companies to divert vessels since late last year, avoiding a route that would take them through Egypt's Suez Canal.

Meanwhile, Metagas Everest, previously known as Everest Energy, is the last vessel to load from Arctic LNG 2, which was sanctioned by the United States over the conflict in Ukraine.

It received the cargo on Oct. 7 and is yet to leave the Kara Sea in the Arctic. LSEG data does not indicate new loadings from the project.

(Reuters - Reporting by Reuters; Editing by Kirsten Donovan)