Russia pushes sanctioned LNG to Asian buyers at discount
Russia is attempting to take advantage of a global natural gas shortage by offering energy-strapped South Asian countries shipments from its US-sanctioned LNG facilities, according to sources familiar with the matter, News.Az reports, citing Bloomberg.
Last week, the shipments were reportedly offered at a 40% discount to spot prices through little-known intermediary companies based in China and Russia, the sources said, requesting anonymity.
The sellers claimed they could provide documentation making the shipments appear to originate from other countries, such as Oman or Nigeria.
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The effective closure of the Strait of Hormuz, combined with attacks on the world’s largest LNG export plant in Qatar, has cut roughly one-fifth of global supply, sending gas prices soaring. With Qatar shipments halted, Bangladesh and India have had to turn to costlier alternatives.
Bangladesh, which sourced 60% of its LNG from Qatar last year, has been buying from the spot market, often paying nearly double its usual contract price. Both Bangladesh and India have also had to reduce gas supply to the fertilizer sector due to the shortfall.
India has historically been cautious about importing sanctioned oil and gas, with the government stating it would not accept Russian LNG from blacklisted projects. Recently, India purchased its first Iranian oil shipment since 2019 under a US Treasury license that temporarily waived restrictions.
Russia has been steadily expanding exports from its sanctioned plants, Arctic LNG 2 and Portovaya, but most buyers remain wary due to potential US retaliation. To date, China is the primary importer of this sanctioned LNG, utilizing a network of shadow fleet vessels.
Broadening deliveries beyond China would allow Russia to diversify its customer base and increase exports from its blacklisted facilities. Arctic LNG 2, launched in 2024 as Russia’s largest LNG plant, has not yet reached full capacity due to limited shipping and cautious buyers.
By Nijat Babayev
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