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Market Chatter: Russia Seaborne Fuel Oil, Vacuum Gasoil Exports Record 6% Monthly Decline in May

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Russia's fuel oil and vacuum gasoil exports by sea recorded a monthly decline of about 6% in May to 3.2 million metric tons, with output and shipments limited due to Ukrainian attacks on its energy infrastructure, according to a Reuters analysis of data from traders and LSEG published on Monday.

Last month, the country's exports to major fuel oil and vacuum gasoil, or VGO, market in Saudi Arabia slipped 17% from April to 1.23 million tons, the report said.

Russian fuel shipments to major bunkering and storage hubs in Singapore and Malaysia fell 39% month over month in May to 400,000 tons, while flows to India dropped 28% to 120,000 tons, the report added.

Meanwhile, almost 140,000 tons of VGO and fuel oil loaded in Russia last month were bound for ship transfers near Port Said, Egypt, with no confirmed final destination.

In a separate report on Monday, citing three sources, Reuters said the newly constructed Longkou LNG terminal in China's Shandong province is being readied as the second import terminal to receive liquefied natural gas shipments from Russia's sanctioned $21 billion Arctic LNG 2 project.

The terminal, operated by PipeChina, is expected to allow China to receive higher sanctioned Russian LNG volumes, while providing another export outlet to Arctic LNG 2, which can produce up to 19.8 million metric tons a year.

has reached out to the Russian Energy ministry, China's National Energy Administration, and Artic LNG 2 project majority owner Novatek for comments. PipeChina could not be immediately reached.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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