Russia Diverts from the Red Sea to Transport LNG to Asia

Data from the London Exchange Group shows that "Russia is shifting its shipments of liquefied natural gas (LNG) to China to a longer route via the Cape of Good Hope, due to the increasing risk of attacks by the Houthi group from Yemen." Fuel-producing countries, including Russia, have been forced to change the routes ships take to deliver shipments to Asia, opting to navigate around Africa in an effort to avoid Houthi attacks in the Red Sea, despite the Suez Canal being the shortest path between Asia and Europe. The conflict has resulted in increased insurance premiums for ships using the Red Sea route, raising costs. The alternative route to Asia adds around 10 days to the journey, which could exacerbate the tanker shortages that Moscow is already facing due to Western sanctions. According to the London Exchange Group data, the tanker LNG Geneva, loaded with Russian LNG on January 3 near Kildin Island in the Murmansk region, took the Cape route and was unloaded on February 16 at the Jieyang port in China. Another tanker, Clean Vision, was loaded with gas from Yamal LNG on January 17 and is heading to China, where it is expected to be unloaded on February 28. The data also shows that vessels loaded with LNG from Yamal in December, which delivered fuel to China via the Red Sea, are returning from the Cape of Good Hope.