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Sibur, Russia’s largest petrochemical company and exporter of liquefied petroleum gas (LNG), is cutting fuel exports from the Baltic port of Ust-Luga due to a shortage of gas tankers amid Western sanctions.
According to Ukrinform, Reuters reports this with reference to industry sources.
It is noted that the reduction in supplies further undermines Russian fuel exports, which have already suffered from fires and drone attacks, in particular in the port of Ust-Luga.
LSEG’s ship tracking data shows that LNG exports from Ust-Luga have already dropped to about 50,000 metric tons in January from 67,000 tons on average each month last year.
According to Navigator Gas’ financial information, Sibur’s contract with the firm for two gas tankers, the Navigator Leo and Navigator Libra, expired in December 2023.
Vessel tracking data from LSEG showed that these two tankers were shipping up to 40% of total LNG exports from Ust-Luga, where Sibur is the only supplier of LNG to the port’s export terminal.
“If Sibur doesn’t find a replacement for the Navigator Gas tankers, it risks significantly reducing transshipment in Ust-Luga,” said one of the sources.
Another source said that it would be difficult for Sibur to find other ice-class tankers because of the European Union and US sanctions imposed because of Russia’s war against Ukraine.
As Ukrinform reported earlier, US sanctions against Russia’s new liquefied natural gas plant in Siberia have ruined plans to start exporting this energy carrier.
