Samsung stops making blocks for Russian shipyard's LNG carriers
Business
Foreign shareholders earlier suspended participation in the Arctic LNG 2 project due to sanctions
SEOUL/MOSCOW (Reuters) - Samsung Heavy Industries said on Tuesday it has stopped making blocks and equipment for 10 out of 15 Arctic liquefied natural gas (LNG) carriers contracted with Zvezda.
Samsung has been delivering blocks and equipment for five of them to Zvezda, the Russian shipyard that is assembling the carriers, after receiving South Korean government approval.
Samsung is nearing the end of making the blocks and equipment for the five ships, a Samsung spokesperson said on Tuesday.
For the remaining 10 ships, Samsung has stopped making the blocks and equipment, but there has been no cancellation of the contract yet, the spokesperson said.
Earlier, the daily Kommersant reported on Monday that foreign shareholders suspended participation in the Arctic LNG 2 project due to sanctions, renouncing their responsibilities for financing and for offtake contracts for the new Russian LNG plant.
The project, seen as a key element in Russia's drive to boost its LNG global market share to 20 per cent by 2030 from 8pc, was already facing difficulties due to US sanctions over the conflict in Ukraine and a lack of gas carriers.
China's state oil majors CNOOC Ltd and China National Petroleum Corp each have a 10pc stake in the project, which is controlled by Novatek, Russia's largest LNG producer and owner of a 60pc stake in the project.
Kommersant, citing unnamed sources in the Russian government, said both Chinese companies, together with France's TotalEnergies and a consortium of Japan's Mitsui and Co, and JOGMEC – which also have a 10pc stake each – declared force majeure on participation in the project.
