Sanctions-hit Arctic LNG 2 demands $1b from South Korean shipbuilder
Arctic LNG 2, which is 60 per cent owned by Novatek, was expected to
become one of Russia's largest LNG plants, with planned output of 19.8 million
tonnes a year. But US sanctions imposed over Russia's actions in Ukraine have
complicated its prospects. Novatek
began production at Arctic LNG in December 2023, but cargo deliveries to
end-users, all in China, did not begin until August 2024. Hanwha Ocean, formerly Daewoo
Shipbuilding and Marine Engineering, had agreed to build six Arc7 tankers for
the project, including three for Russia's Sovcomflot and three for Japan's
Mitsui OSK Lines. However, Hanwha has previously said the three tankers ordered
by Sovcomflot were cancelled because of the sanctions on Russia. In a disclosure dated September 3, Hanwha
said Arctic LNG 2 had filed a claim with the Singapore International
Arbitration Centre related to a shipbuilding contract that had been
terminated. The claim totals KRW1.37
trillion, equivalent to about $1.02 billion.
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