NEW DELHI/SINGAPORE — May 11, 2026 : India has refused to accept a liquefied natural gas (LNG) cargo from Russia’s U.S.-sanctioned Portovaya LNG facility, leaving the 138,200-cubic-metre tanker Kunpeng stranded near Singaporean waters without a confirmed discharge destination, according to a Reuters report published on May 11.
The vessel had loaded LNG at Russia’s Portovaya plant on the Baltic Sea and was initially scheduled to deliver the cargo to the Dahej LNG import terminal in Gujarat, operated by Petronet LNG Ltd. However, the tanker later withdrew its broadcast destination, with shipping data indicating the cargo had been rejected before arrival.
Indian officials communicated the refusal during Russian Deputy Energy Minister Pavel Sorokin’s visit to New Delhi on April 30. Sorokin held discussions with India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, as both sides reviewed ongoing energy cooperation and Russian supply proposals.
According to sources familiar with the matter, the cargo was identified as originating from the sanctioned Portovaya LNG plant despite documentation indicating non-Russian origin. The United States imposed sanctions on Portovaya LNG and Russia’s Arctic LNG 2 project in January as part of broader measures targeting Moscow’s energy export revenues following the war in Ukraine.
The Portovaya LNG facility, operated by Gazprom, has an annual production capacity of 1.5 million tonnes and began operations in September 2022. Since the sanctions were introduced, exports from the facility have declined significantly, with only limited shipments reported to destinations including Kaliningrad and China.
India continues to remain one of the largest buyers of Russian seaborne crude oil under existing arrangements and temporary U.S. sanction waivers. However, LNG shipments present greater compliance challenges than crude oil cargoes. While crude shipments can be obscured through ship-to-ship transfers and blended cargoes, LNG trade depends on specialized cryogenic carriers, fixed receiving terminals, and closely monitored infrastructure that allows easier tracking of cargo origin.
The rejection marks a shift from earlier discussions held in March between Sorokin and Puri, when both sides explored the possibility of resuming direct LNG supplies from Russia, including cargoes from the Arctic LNG 2 project. Reports at the time suggested a broader energy agreement could be finalized pending Indian approval.
The development comes as global gas markets remain under pressure due to tighter supplies and continuing disruptions to Middle Eastern shipping routes, including the Strait of Hormuz. Despite growing supply concerns, Indian authorities opted against accepting cargo linked to sanctioned Russian facilities.
India remains open to importing authorized Russian gas volumes, but most unsanctioned Russian LNG production is already tied to long-term contracts with existing buyers, limiting availability for new spot sales. With the Kunpeng cargo rejected, Russia faces increasing difficulty redirecting sanctioned LNG exports, leaving China among the few remaining markets willing to receive such shipments.
Ship-tracking data from LSEG and analytics firms including Kpler confirmed the tanker’s movements and the origin of the cargo. As of May 11, no alternative buyer or revised destination for the shipment had been announced.
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