Arctic LNG 2
Novatek's sanctioned LNG export plant on Russia's Gydan Peninsula, shipping cargoes to China since 2025.
Arctic LNG 2 ships its gas on shadow-fleet carriers that sail without Western insurance, and on 3 March 2026 explosions destroyed one of them, the Arctic Metagaz, laden with the plant's cargo, between Malta and Libya.
Last refreshed: 18 October 2026 · Appears in 1 active topic
Can sanctions stop Arctic LNG 2 cargoes reaching China?
Timeline for Arctic LNG 2
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Russia-Ukraine War 2026Background
Arctic LNG 2 is a Liquefied Natural Gas plant on Russia's Gydan Peninsula, run by Novatek, which holds 60%. It was designed for 19.8m tonnes a year. The United States placed it under blocking sanctions on 2 November 2023 and the United Kingdom followed on 22 February 2024; the EU sanctions it too. Its foreign partners froze their stakes.
Sanctions cut the plant off from Western shipping, so it exports through a shadow fleet. Deliveries to China's Beihai terminal, its only confirmed buyer, began in August 2025; Beihai took 23 cargoes, about 1.3m tonnes, that year.
That route is the target of the next round of pressure. On 14 October 2026 Britain's ministers began lobbying allies to bar shipping, insurance and finance services for Russian LNG cargoes. A services ban bites only where the trade still uses Western firms, and Arctic LNG 2's cargoes have reached China on carriers outside them.
Its shadow fleet lost a loaded carrier
The Arctic Metagaz left Murmansk carrying Arctic LNG 2 cargo. Around 04:00 on 3 March 2026, multiple explosions struck the 277-metre carrier between Malta and the Libyan port of Sirte. All 30 crew were evacuated alive. It was the first confirmed destruction of an LNG carrier in any modern conflict. TASS blamed Ukrainian sea drones; Ukraine neither confirmed nor denied it.
For the project, the loss exposed the weak point in its business model. Sanctions push its cargoes onto vessels with no Protection and Indemnity cover, no port-state inspections and no naval escort. Arctic LNG 2 was Moscow's hedge, with Asian buyers replacing European ones ahead of the EU's phased LNG ban from 25 April. A strike in the Mediterranean raises the freight and security cost for any importer weighing its discounted gas.
Who buys gas from Arctic LNG 2?
When was Arctic LNG 2 sanctioned?
Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 18 October 2026. Editorial standards.