Last week, shipments were offered at a 40% discount to spot prices through lesser-known intermediary firms based in China and Russia, according to sources who requested anonymity due to their inability to speak to the media. The sellers indicated that they could provide documentation to make it appear that the shipments were from non-Russian origins, such as Oman or Nigeria, the sources added.
Bloomberg News was unable to verify whether any of the shipments were actually purchased.
The near closure of the Strait of Hormuz – along with attacks on the world’s largest LNG export facility in Qatar – has disrupted about 20% of global supply, causing turmoil in the gas market and driving up prices. Shipments from Qatar have halted, compelling customers in Bangladesh and India to seek more costly alternatives.
Also Read: Pluckk to channel ₹100 crore fundraise into R&D, AI and distribution, says CEO Pratik Gupta
Bangladesh, which sourced 60% of its LNG from Qatar last year, is now compelled to procure shipments from the spot market, sometimes paying nearly double what it would have under its long-term agreements with the Middle Eastern nation. Both Bangladesh and India have had to reduce gas supplies to the fertilizer sector due to the decline in LNG deliveries.
India generally adopts a cautious stance regarding the importation of sanctioned oil and gas, with the government previously stating that it would not accept Russian LNG from blacklisted projects. India did, however, procure its first Iranian oil shipment since 2019 after a US Treasury general license was issued last month, waiving certain restrictions.
While Russia has been steadily increasing exports from its US-sanctioned facilities — Arctic LNG 2 and Portovaya — most buyers remain hesitant to accept restricted shipments due to concerns of retaliation from Washington. China has thus far been the sole country to import the sanctioned Russian LNG using a network of shadow fleet vessels.
Expanding shipments to nations beyond China would assist Russia in diversifying its customer base and increasing exports from its blacklisted facilities. Arctic LNG 2 — designed to be the largest Russian LNG plant — began exports in 2024, but its full capacity has been hindered by limited shipping availability and uncommitted buyers.
