Sanctioned tanker with LNG cargo passes via Suez Canal, data shows

The Pioneer tanker, sanctioned by the United States over its links to Russia-sourced liquefied natural gas (LNG), has passed through the Suez Canal with an LNG cargo, LSEG data showed on Monday.

The source of the LNG and Palau-flagged Pioneer's destination were not immediately clear. The tanker is registered to Zara Shipholding Co, which has offices in Dubai and India's Mumbai.

Shippers have largely shunned the Suez route since late last year to avoid attacks by Iran-aligned Houthis in the Red Sea.

The canal is a key trade link between Europe and Asia, channeling nearly 12% of global cargo. The current crisis is forcing shipping companies to use longer routes, disrupting their schedules and adding to their costs.

Global fuel producers, including Russia, have been forced to change the way they deliver to Asia and go around Africa.

Last month, the United States imposed sanctions on two companies and two vessels, including Pioneer, which are linked to Russia's Arctic LNG 2 project, in one of Washington's latest move to penalise Moscow for its invasion of Ukraine.

According to U.S. the State Department, Pioneer was involved in a ship-to-ship transfer of gas from Arctic LNG 2 on Aug. 25.