Wison New Energies has become the first Chinese partner to leave the Russian market after announcing it would stop participating in private energy giant Novatek's giant LNG project in the Arctic, called Arctic LNG 2.
“The Board of Directors of Wison New Energies has decided to cease all ongoing projects with Russia and will immediately and indefinitely cease any new business activities in Russia,” Wison said in a statement posted on the LinkedIn platform last week.
“We value the good relationship we have established with our Russian partners in the past and appreciate the work we have done together. However, given the strategic outlook of the company, we have had to make this difficult decision.”
Wison is one of the world's leading manufacturers of LNG modules, including complete floating LNG liquefaction plants for offshore production. It is one of several Chinese foreign contractors that won the tender to supply modules for Novatek's LNG plant on the Gydan Peninsula in the Russian Arctic region of Siberia.
Wison New Energies becomes the first Chinese partner to leave the Russian LNG market for fear of sanctions. Photo: Offshore Energy
According to Reuters, Wison’s withdrawal will have a certain impact on the Arctic LNG 2 project, which has been sanctioned by the US. The first production line (T1) of the plant was completed and put into production in December last year but has not yet been able to start commercial deliveries.
Work remains unfinished on the remaining two lines, T2 and T3, as Western suppliers withdrew from the project since Russia launched its military campaign in Ukraine.
Leading Western companies such as Mammoet, Baker Hughes, Saipem, Boskalis, Technip and Linde have all abandoned the project, leaving Novatek scrambling to replace these engineering and marine experts with lesser-known entities.
But the US has begun sanctioning Novatek's remaining suppliers, starting with Russian companies JSC Energies, Nova Energies, Singaporean module carrier Red Box and Abu Dhabi (UAE)-based Green Energy Solutions.
Last week, the US Treasury Department also blacklisted Chinese shipbuilder Penglai Jutal Offshore Engineering Heavy Industries (PJOE), which is one of Wison’s partners and a key supplier of process modules for Novatek’s Arctic LNG 2 project.
Wison has so far escaped the US's "sights", despite being a key partner in the Arctic LNG 2 project. As recently as January this year, four giant modules for the plant's T3 production line were seen in satellite images of the Wison plant in China, according to High North News.
According to Maritime Executive, Wison's announcement that it will exit the Russian market does not necessarily mean that Novatek will lose a supplier. There is still a possibility that Wison's contract with Novatek could be implemented under new ownership.
In a statement on June 21, the board of directors of Wison New Energies said it was selling all of its shares in the Zhoushan Wison Offshore & Marine Limited facility, where modules for the Arctic LNG 2 project are being assembled. Wison will no longer have any business ties with Zhoushan.
Wison, which has been spared the risk of being caught in the crossfire of US sanctions on its Russian operations, will be free to pursue export contracts with other customers. On the same day it announced its exit from the Russian market, Wison also said it had won a $1.2 billion order for a floating LNG (FLNG) facility from Malaysia’s Genting Bhd.
Minh Duc (According to Maritime Executive, Reuters)
Source: https://www.nguoiduatin.vn/so-va-lay-doi-tac-trung-quoc-roi-bo-du-an-lng-cua-nga-o-bac-cuc-a670437.html
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