Chinese firms ‘told to stop work on Russian Arctic LNG 2 project’ due to EU sanctions
- Fabricators received notifications to halt work on modules by the end of this month, according to industry publication
- But a source with one yard says ‘there is no final word yet’ and it’s in close communication with those involved
But one Chinese fabricator told the South China Morning Post that it remained “in close communication with the parties involved”, as the situation was “changing every day”.
“There is no final word on this matter yet,” said a source with Tianjin-based Bomesc Offshore Engineering, which is building 10 modules for the Arctic LNG 2 project.
Bomesc and other Chinese yards – including Cosco Shipping Heavy Industry, Penglai Jutal Offshore Engineering, Wison Offshore Engineering and Qingdao McDermott Wuchuan – are involved in the fabrication of modules for two of the massive gas project’s three liquefaction trains, or production lines.
The five Chinese companies did not immediately respond to inquiries.
They are building the modules for Technip Energies, the French oil and gas company awarded the engineering, procurement and construction contract for the Novatek project.
But according to a May 10 report by Norway-based energy industry publication Upstream, the Chinese yards received notifications to halt work on modules for the project’s third train by April 29 and its second train by May 27, as a result of the European Union’s sanctions against Russia.
Citing sources, the report also said there were uncertainties over transporting some finished units from China to Russia.
