Tuesday, February 27, 2024

ARGENTINA | 19-07-2023 17:10

Argentina rejects Russia-sourced LNG cargo, citing sanctions

Argentina takes action to prevent Russian LNG import for Enarsa due to sanctions

Argentina’s government blocked a Russian-sourced liquefied natural gas cargo from being imported for state-run energy company Enarsa, citing sanctions in place. 

Economy Minister Sergio Massa told Argentine TV station C5N Tuesday night the decision was made with the president of Enarsa because the cargo came from Russia.

“Enarsa blocked the delivery because it violates the contract because it’s a sanctioned company,” Massa said in the television interview.

The invasion of Ukraine in early 2022 by Russia created a crunch for Europe to reduce its reliance on Russian supply and seek replacement gas via LNG. While no sanctions have been imposed on Russian LNG, some European nations banned the nation’s super-chilled fuel and others urged not to renew supply contracts. Some Asian buyers also appear to be diversifying.

According to Bloomberg ship-tracking data, the vessel Flex Artemis initially loaded volumes at France’s Montoir-de-Bretagne terminal on June 25, lifting gas that originated from Novatek PJSC-led Yamal LNG in Russia.

The vessel then departed toward Argentina’s LNG terminal in Bahia Blanca, approaching it on July 14 before turning around Tuesday without delivering the volumes.

Trading house Gunvor Group Ltd has charter of the Flex Artemis vessel. Gunvor was not immediately available for comment. 

By Ruth Liao, Jonathan Gilbert and Anna Shiryaevskaya/Bloomberg

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