Wison New Energies has announced the cessation of all ongoing projects in Russia, effective immediately, following thorough evaluation.
The Chinese engineering company’s decision will affect the Arctic LNG 2 project, which is spearheaded by Russia’s Novatek, reported Reuters.
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In a LinkedIn post, the company said: “We appreciate the good relations we have built with our Russian partners in the past and value the work we have done together. However, in view of the strategic future of the company, we have to make this difficult decision.”
Previously, Novatek disclosed plans to build a gas turbine power station for the liquefied natural gas (LNG) plant, utilising equipment from Wison and Harbin Guanghan Gas Turbine.
Novatek aimed to establish the Arctic LNG 2 plant on the Gydan Peninsula as the country’s most significant LNG facility.
The plant’s projected capacity was to reach 19.8 million tonnes per annum (mtpa) of LNG and 1.6mtpa of stable gas condensate across three production lines.
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By GlobalDataInitial commercial deliveries were scheduled for the first quarter of this year, following the commencement of production at the first train in December.
However, the project faced setbacks last year when it became a target of Western sanctions due to Russia’s engagement in Ukraine. This led to foreign shareholders freezing their participation and Novatek declaring force majeure.
As a result, Novatek had to suspend production owing to the sanctions and a lack of available gas tankers.
Furthermore, Wison New Energies has decided to divest its entire stake in Zhoushan Wison Offshore & Marine.
Last week, Genting, through its oil and gas subsidiaries, awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract to Wison New Energies for a 1.2mtpa floating LNG (FLNG) facility.
Wison New Energies will undertake the construction of the FLNG facility at its shipyards in Nantong and ZhouShan.
