India Rejects Sanctioned Russian LNG Shipment

India has declined to accept a shipment of liquefied natural gas from Russia's U.S.-sanctioned Portovaya plant in the Baltic Sea, leaving the tanker Kunpeng idling near Singapore since mid-April, according to sources familiar with the matter.

The 138,200-cubic-meter vessel, carrying approximately 60,000 tons of LNG, had indicated India's Dahej terminal in Gujarat as its destination. Indian buyers and terminal operators refused the cargo to avoid risks associated with U.S. sanctions. The decision was conveyed directly to Russia's Deputy Energy Minister Pavel Sorokin during his meeting with India's Petroleum and Natural Gas Minister Hardeep Singh Puri on April 30 in New Delhi, sources said. It marked the second such discussion between the officials in two months.

India, the world's third-largest oil importer and consumer, continues to purchase significant volumes of Russian crude oil, supported by temporary U.S. waivers aimed at stabilizing global energy markets. However, LNG cargoes differ due to their traceability. Unlike crude, which can involve ship-to-ship transfers to obscure origins, LNG shipments follow fixed routes from specific plants and are easily tracked via satellite...