• Home
  • News
  • France’s Technip to complete exit from Arctic LNG 2 project in H1 2023 - High North News
  • 2022 October 25 17:37

    France’s Technip to complete exit from Arctic LNG 2 project in H1 2023 - High North News

    French company Technip, the last major remaining western partner to construct Novatek’s flagship LNG project in the Arctic, announced that it had finalized plans for an “orderly” exit from the project expected to be completed during the first six months of 2023, according to High North News.

    With France’s Technip announcing its definitive departure from the Arctic’s largest LNG project in the first half of 2023, Novatek, the Russian energy company who owns Arctic LNG 2, has lost all of its major western construction and technology partners.

    Technip originally intended to continue working with Novatek on the project. At the time the company’s CEO Arnaud Pieton stated that while the company would not pursue any new business ventures in Russia it would continue meeting its contractual obligations related to the project.

    However, the company’s position had since gradually changed in light of an increasing sanction regime. Last week’s announcement represents the final step in exiting the project.

    "We have signed an Exit Framework Agreement with our customer […] and anticipate completing this process within the first half of 2023," stated Pieton as part of last week’s earnings statement.

    Prior to Technip’s departure a host of other companies had announced their decisions to exit the project. The list includes some of the largest industrial and energy conglomerates in Europe, including Germany’s Siemens and France’s Total.

    Other multinational companies who ended their involvement in the project are German gas and engineering company Linde, Italian oil and gas services company Saipem, and American industrial service company Baker Hughes. Some companies registered multi-billion dollar write-offs as a result of leaving the project.

    Novatek also lost a number of key partners in Asia, including Mitsui Group, one of the world’s largest industrial conglomerates. Japan’s government-owned Bank for International Cooperation withdrew a USD1.8bn loan for the project. Chinese shipyards also stopped constructing modules for the LNG plant.

    Meanwhile in South Korea, major ship builder Daewoo Shipbuilding & Marine Engineering terminated a contract for the construction of several LNG tankers crucial for the transport of Novatek’s LNG.

    Novatek has since turned to domestic companies, including Nova Energies, and corporations outside the western sanctions regime to help it complete at least parts of the Arctic LNG 2 project. However, the completion of even the first stage of the plant will be delayed by at least a year the company recently announced.

    For the purpose of bypassing sanctions and securing access to key technology, Novatek is partnering with newly established company Green Energy Solutions based out of the United Arab Emirates.

    While EU sanctions have hit the construction of Russian LNG projects hard, they have not been aimed at curtailing the flow of the country’s LNG into Europe. Latest figures show that imports of Russian LNG to Europe are up significantly during the first nine months of 2022 compared to the same period last year.

2023 March 30

12:58 Alfa Laval joins the Global CCS Institute
12:46 USC’s Lotos Shipyard starts cutting steel for lead container ship of Project 00108
12:22 Sergey Kulikov appointed as General Director of Russian Maritime Register of Shipping
12:01 MAN Energy Solutions’ MAN 49/60DF engine receives Type Approval
11:45 Dredging works commenced on Volga-Caspian Canal
11:33 Port of Houston container volumes up 15% in February 2023
11:04 VARD Electro AS signs multi-million-euro project with Yaskawa Environmental Energy / The Switch
10:41 Global long-term container rates down by 24% since August 2022 - Xeneta
10:23 RC Dock receives Class Approval from RINA for new remotely controlled unmanned workboats
10:11 RosGeo invested about RUB 500 million in equipment of ships in 2022
09:58 The Maritime and Port Authority of Singapore сollaborates with Bluenergy Solutions to launch Proof of Value project for clean tidal energy
09:24 Ordering of special ships for tourism is easier than modernization of research vessels for cruises - RosGeo

2023 March 29

19:28 The problem of excess stock in Russia’s Far Eastern ports is settled – Vladimir Putin
18:37 ABP and Sizewell C plan to develop Direct Air Capture facility at Port of Lowestoft
18:06 Port of Savannah adds 55 hybrid yard cranes
17:46 ADNOC LS unveils Integrated Logistics Services Platform
17:30 Roundtable meeting “Working professions in seaports” to be held in online format on 25 April 2023
17:16 Inland ports welcome a a deal on the requirements for Alternative Fuel Infrastructure
17:03 Rosneft Oil Company and Indian Oil Company sign agreement to substantially increase oil supplies
16:49 IMO CARES project receives a further round of funding from the Kingdom of Saudi Arabia
16:31 Poseidon Acquisition acquires all of the outstanding common shares of Atlas
16:26 DP World expands offering at the Port of Berbera in Somaliland with new edible oil terminal
16:14 Fuel oil and VGO shipments from Russian ports to Singapore and Malaysia could exceed 1.1 million metric tonnes in March
15:43 Moín Container Terminal receives its third largest vessel
15:27 Russian Railways to increase Eastern Polygon capacity by 9.5% this year
15:13 Syria port authority shuts all ports due to bad weather - Reuters
14:59 USC General Director named flammability and price of composite materials as key factors hindering their use in shipbuilding
14:12 ICS publishes new landmark practical medical guide
13:42 Wartsila to supply the engines for Celebrity Cruises’ new ship
13:23 Lead bulkers for grain exports to be launched in 2025-2026 — Rosagroleasing
13:12 DNV upgrades AFI platform to promote data-sharing and accelerate transition to zero-carbon shipping
12:42 GTT entrusted by Samsung Heavy Industries with the tank design of a new Floating Liquified Natural Gas unit
12:08 Eight new LNG carriers will feature Wartsila reliquefaction systems
11:36 NYK to make Mitsubishi Ore Transport its wholly-owned subsidiary
11:12 Tianjin Port Development announces 2022 results
11:00 DP World opens one-stop refrigerated container facility in Sydney
10:56 Belarus exports its cargo via 20 Russian ports at preferential tariffs – PM Roman Golovchenko
10:45 Greek fleet shrinks for the first time since 2018
10:14 “K” Line announces the launching of demonstration test ship for liquefied CO2 transportation
10:07 Russia and India to consider joint use of Northern Sea Route for cargo transportation to Europe
09:25 USC prepared documentation for financial recovery programme

2023 March 28

18:00 Rosatom suggests replacement of floating power unit Akademik Lomonosov with more powerful one — Yury Trutnev
17:36 CLIA and ECSA issue statement on the Renewable Energy Directive
17:06 China Energy establishes shipping company
16:53 Oil supplies from Russia to India surged 22 times in 2022 — Aleksandr Novak
16:28 Rosatom suggests that oil companies transport some of their cargo by NSR
16:23 Norsepower secures €28 million from investors to bring sails back to shipping
16:05 MEYER RE and Damen Shiprepair sign cooperation agreement
15:46 Monjasa oil tanker boarded by pirates in the Gulf of Guinea
15:24 Equinor announces two rig contracts and a collaboration agreement with Transocean
15:15 Delivery of some rescue ships intended for the Arctic can be delayed by a year and a half— head of Rosmorrechflot
14:51 IMO GHG working group progresses work on revision of IMO climate strategy
14:30 Oboronlogistics counts on 20-pct increase of cargo transportation in cars by Ust-Luga - Baltiysk railway ferry line
14:21 Aramco JV HAPCO to commence construction of major refinery and petrochemical complex in China
14:07 Oboronlogistics’ Ambal ferry to leave for scheduled repairs in the second half of the summer
13:42 The world’s first floating wind fishing integrated platform design receives authoritative certification
13:19 Mitsubishi Shipbuilding holds launch ceremony in Shimonoseki for demonstration test ship for liquefied CO2 transport
12:52 Capacity of Western Arctic seaports to reach 149.5 million tonnes by 2030
12:43 MOL and Rio Tinto to strengthen partnership for safer operation
11:40 Kawasaki Heavy Industries receives an order for an 86,700 m³ LPG-fueled LPG/ NH3 carrier