Wison New Energies will also divest its entire stake in Zhoushan Wison Offshore & Marine. Credit: Wojciech Wrzesien/Shutterstock.

Wison New Energies has announced the cessation of all ongoing projects in Russia, effective immediately, following thorough evaluation.

The Chinese engineering company’s decision will affect the Arctic LNG 2 project, which is spearheaded by Russia’s Novatek, reported Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In a LinkedIn post, the company said: “We appreciate the good relations we have built with our Russian partners in the past and value the work we have done together. However, in view of the strategic future of the company, we have to make this difficult decision.”

Previously, Novatek disclosed plans to build a gas turbine power station for the liquefied natural gas (LNG) plant, utilising equipment from Wison and Harbin Guanghan Gas Turbine.

Novatek aimed to establish the Arctic LNG 2 plant on the Gydan Peninsula as the country’s most significant LNG facility.

The plant’s projected capacity was to reach 19.8 million tonnes per annum (mtpa) of LNG and 1.6mtpa of stable gas condensate across three production lines.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Initial commercial deliveries were scheduled for the first quarter of this year, following the commencement of production at the first train in December.

However, the project faced setbacks last year when it became a target of Western sanctions due to Russia’s engagement in Ukraine. This led to foreign shareholders freezing their participation and Novatek declaring force majeure.

As a result, Novatek had to suspend production owing to the sanctions and a lack of available gas tankers.

Furthermore, Wison New Energies has decided to divest its entire stake in Zhoushan Wison Offshore & Marine.

Last week, Genting, through its oil and gas subsidiaries, awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract to Wison New Energies for a 1.2mtpa floating LNG (FLNG) facility. 

Wison New Energies will undertake the construction of the FLNG facility at its shipyards in Nantong and ZhouShan.