South Korea, Japan and France refuse to build tankers for Russia's Arctic LNG 2 project - WSJ
Novatek is trying to build ships on its own, but without Western technology it is difficult
Liquefied natural gas production at Novatek's Russian Arctic LNG 2 project has been halted due to US sanctions.
Source. The Wall Street Journal reports.
The sanctions have prevented Russia from purchasing specialised tankers for gas transportation, while the construction of its own is complicated by the lack of necessary equipment, the WSJ writes.
Transportation requires special tankers that can navigate through the frozen parts of the Arctic Ocean, but foreign companies refuse to customise them because of sanctions.
According to the WSJ, South Korea's Hanwha Ocean has cancelled plans to build three LNG-2 vessels for the Arctic. Japan's Mitsui O.S.K. Lines said it would not service Arctic LNG 2, although it also planned to charter three vessels.
The company is trying to build the ships on its own, but membrane systems are needed to cover the gas storage facilities. The French engineering company Gaztransport&Technigaz, which has ceased operations in Russia, specialises in their development.
LNG shipments from the first line of Arctic LNG 2 were scheduled to begin in late 2023.
The second line was expected to be launched in 2024, and the third in 2026.
In December, the construction of the first plant was completed, but the company notified its customers of force majeure regarding future deliveries.
LNG exports were supposed to start at the beginning of the year, but, according to the newspaper's sources, the company is now mainly recycling the gas it has already produced.
If you have read this article to the end, we hope that means it was useful for you.
We work to ensure that our journalistic and analytical work is of high quality, and we strive to perform it as competently as possible. This also requires financial independence. Support us for only UAH 196 per month.
Become a Mind subscriber for just USD 5 per month and support the development of independent business journalism!
You can unsubscribe at any time in your LIQPAY account or by sending us an email: [email protected]
