Russia is offering LNG shipments at 40 percent discounts to attract energy-starved South Asian markets, taking advantage of a global natural gas shortage.
The shipments are using U.S.-approved facilities, via intermediaries based in China and Russia.
The seller said documents could be provided to show non-Russian LNG sources, such as Oman or Nigeria, but it could not be confirmed whether any shipments had been purchased.
Global supply disruptions caused by the closure of the Strait of Hormuz and attacks on the world’s largest LNG export plant in Qatar have affected about a fifth of global supplies, pushing up gas prices and forcing customers in Bangladesh and India to seek more expensive alternatives.
Bangladesh, which relied on Qatari LNG for 60 percent last year, is now buying from the spot market at nearly double the cost of long-term contracts. Both countries are also restricting gas supplies to the fertilizer sector due to reduced shipments.
India is usually wary of buying LNG from blacklisted projects, but it began accepting shipments of Iranian oil after a special U.S. Treasury license was issued last month.
Most buyers are still wary of accepting US-approved Russian LNG, with China so far the only importing country.
Russia is seeking to expand exports from its Arctic LNG 2 and Portovaya facilities to diversify its customers.
While Arctic LNG 2 is designed to be Russia’s largest plant and begin exporting from 2024, full capacity is still limited by shipping constraints and buyer willingness, making the 40 percent discount a strategy to attract the South Asian market.
