China’s FLNG builder Wison New Energies has decided to discontinue all ongoing Russian projects. The company also said it will immediately and indefinitely stop taking any new Russian business.
Wison New Energies, previously known as Wison Offshore & Marine, revealed this in a social media post on Friday.
“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,” Wison said.
At the same time, Wison said it has decided to sell its entire equity interest in Zhoushan Wison Offshore & Marine.
Wison or any entity of Wison will not have any ownership in the new Zhoushan shareholding, the company said.
“We are fully aware of the impact this decision may have on relevant partners and employees, and we will do our best to properly handle all follow-up matters and ensure a smooth transition,” Wison said.
“We will also actively seek new development opportunities to lay a solid foundation for the company’s long-term development,” the company added.
Arctic LNG 2
Back in 2019, Wison started the construction of modules at the Zhoushan yard for the Novatek-led Arctic LNG 2 project under a contract with Technip. Wison started delivering these modules in 2021.
In August last year, Novatek completed the installation of the first gravity-based structure platform which will serve its Arctic LNG 2 project located on the Gydan peninsula.
The first GBS, or train, has a capacity of about 6.6 mtpa, such as the the two other units which are under construction.
According to reports in Russia, Novatek started production of LNG from the first unit in December but it is not shipping LNG from the project due to sanctions by the US and the EU and lack of vessels.
Last year, Russian media also reported that Novatek planned to build a gas turbine power station for the Arctic LNG 2 plant using tech from Wison and Harbin Guanghan Gas Turbine to replace Baker Hughes.
Third FLNG
Wison’s announcement regarding the Russian business came one day after the firm secured a contract from a unit of Genting to build a floating LNG unit worth about $1 billion.
Following completion in 2026, the 1.2 mtpa FLNG will be installed in Indonesia.
This is Wison’s third FLNG contract, after contracts with Exmar and Eni.
Also, this will be the first FLNG facility in Indonesia and the ninth FLNG in the world.
Wison won a contract from Italy’s Eni in December 2022 to build a 380 meters long 2.4 mtpa FLNG and officially started work on the project in January last year.
The company recently completed the installation of all SPB tanks on the FLNG, which will serve the Marine XII offshore FLNG project in Congo.