A Chinese company deals a blow to Russia’s Arctic LNG ambitions
Chinese engineering company Wison New Energies has decided to stop all ongoing Russian projects and will immediately and indefinitely stop accepting new business in Russia, dealing a serious blow to the Arctic LNG 2 project. “ In view of the strategic future of the company , we are forced to make this difficult decision ,” the company said in a LinkedIn post.
“I n view of the strategic future of the company, we must make this difficult decision,” the company said in a post on LinkedIn.
The Arctic LNG 2 project planned to build a gas turbine power plant for the plant, using equipment from Wison and Harbin Guanghan Gas Turbine Co. Ltd. These two companies likely have business with the West that could be put at risk by participation in the Russian Arctic project.
The Chinese firm's withdrawal is the latest setback for major Russian LNG exporter Novatek's Arctic LNG 2 project.
Located on the Gydan Peninsula in the Arctic, the Arctic LNG 2 project has been seen as critical to Russia's efforts to increase its global LNG market share from 8% to 20% by 2030-2035.
Foreign shareholders suspended participation in the Arctic LNG 2 project after the Biden Administration announced new sanctions in November 2023, effectively withdrawing from project financing and offtake contracts for the new plant.
In November, the US State Department designated ARCTIC LNG 2 Limited Liability Company, the operator of the Arctic LNG 2 Project, as part of additional sanctions against Russia “to further target persons and entities associated with the country's war effort Russia and other malign activities."
US sanctions on Arctic LNG 2 have upended Novatek's plans to start production and export timelines.
Earlier this year, Reuters exclusively reported that Novatek is being forced to scale down what would have been Russia's largest export facility, Arctic LNG 2, as Western sanctions are limiting the company's access to vessels ice class LNG tanker.
Russian LNG also became the target of the first EU sanctions on Russian gas. The European Union is preparing to ban the re-export of Russian LNG into the bloc's waters, in a first measure of sanctions against Russian gas agreed this week.
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The article Chinese company deals a blow to Russian Arctic LNG ambitions comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/una-societa-cinese-da-un-duro-colpo-alle-ambizioni-russe-sul-gnl-artico/ on Sat, 22 Jun 2024 06:00:35 +0000.