Sanctioned LNG cargo tanker passes through Suez Canal, data shows

The tanker Pioneer, sanctioned by the United States over its links to liquefied natural gas (LNG) from Russia, transited the Suez Canal with a cargo of LNG, LSEG data showed on Monday.

The source of the LNG and the destination of the Palau-flagged Pioneer were not immediately clear. The tanker is registered to Zara Shipholding Co, which has offices in Dubai and Mumbai in India.

Carriers have largely avoided the Suez route since late last year to avoid attacks by the Iran-aligned Houthis in the Red Sea.

The canal is a key trade link between Europe and Asia, channeling almost 12% of global cargo. The current crisis is forcing shipping companies to use longer routes, disrupting their schedules and adding to their costs.

Global fuel producers, including Russia, have been forced to change the way they ship to Asia and go around Africa.

Last month, the United States imposed sanctions on two companies and two ships, including Pioneer, that are linked to Russia’s Arctic LNG 2 project, in one of Washington’s latest moves to penalize Moscow for its invasion of Ukraine.

According to the US State Department, Pioneer was involved in a ship-to-ship transfer of gas from Arctic LNG 2 on August 25.

(Reporting by Reuters)

TOPICS
Process Trucks