Kommersant learned about Korea's refusal to build tankers for Arctic LNG 2

South Korean shipyard DSME said it had not received payment for one of the tankers. According to Kommersant,

The South Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME) has terminated the contract for the construction of three tankers for the Arctic LNG 2 project, Kommersant reports citing sources.

According to the publication, in a disclosure on May 17, DSME said that “the shipowner’s payment for the construction of one LNG tanker was not made on time” and he was notified of the termination of the contract. The shipyard did not name the shipowner, but stated that it was a European counterparty.

Kommersant's sources said that this is an order from Sovcomflot for tankers for Arctic LNG 2 (a NOVATEK project) and the contract is planned to be terminated completely, despite the fact that payment has not been received for only one tanker.

Sovcomflot spokeswoman Anna Dubik told RBC that the company does not comment on commercial contracts. RBC sent a request to a NOVATEK representative.

SCMP learned of possible suspension of Chinese participation in Arctic LNG 2 Business

The newspaper notes that for the EXPORT of liquefied natural gas from Arctic LNG 2, NOVATEK planned to create a fleet of 21 Arc7 ice-class tankers. Of these, 15 were to be built at the Zvezda shipyard in the Far East and six at DSME. Sovcomflot was to become the owner of three ships built at the Korean shipyard, the remaining three - the Japanese MOL. According to the publication, the contract with her is valid. In 2020, Kommersant sources indicated that the cost of six Arc7 tankers would be $1.7 billion.

Earlier this week, the South CHINA Morning Post, citing sources, reported that at least five Chinese companies could end production of Arctic LNG 2 modules due to sanctions against RUSSIA. The final decision to withdraw from the project has not yet been made.

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In March, France's TOTALENERGIES SE decided to stop investing in Arctic LNG 2. She owns 10% in the project, she also owns 19.4% of NOVATEK and 20% of Yamal LNG.

Total has decided not to display reserves for the Arctic LNG 2 project Business

In early April, the EU banned the supply of gas liquefaction equipment to Russia, regardless of the country of origin. Deliveries under contracts concluded before February 26 must be completed no later than May 27. In mid-May, the HEAD of NOVATEK, Leonid Mikhelson, said that the first line of the Arctic LNG 2 was completely ready, despite the “great difficulties” due to the imposition of sanctions related not only to products and services, but also to logistics.

Arctic LNG 2 is NOVATEK's second liquefied natural gas (LNG) plant. The project provides for the construction of three lines with a capacity of 6.6 million tons of LNG per year each and stable gas condensate up to 1.6 million tons per year. The resource base of the project is the Utrenneye field on the Gydan Peninsula in the YaNAO. In November last year, NOVATEK reported that the project had raised €9.5 billion from Russian and international banks, with more than half provided by Chinese and Japanese lenders.