US Sanctions Disrupt Delivery Of New Ships To Russian LNG Plant

Takeshi Hashimoto, President of Mitsui OSK Lines Ltd., a Japanese shipping company, claims that US sanctions are seriously hindering the delivery of specialised ships to a new LNG facility in Russia, as reported by Bloomberg. These restrictions make it more difficult for the corporation to sell its three ice-breaker LNG ships since they prevent them from being chartered to the Arctic LNG 2 project. This development threatens the exports essential to Russia’s objectives for LNG.

The Arctic LNG 2 project, operated by Novatek PJSC, one of Russia’s biggest LNG exporters, has been harmed by the sanctions, which were put in place in reaction to Russia’s full-scale invasion of Ukraine. Novatek intended to use the vessels to transport fuel from the platform, which was required to operate at total capacity. However, without them, Novatek has been forced to postpone the facility’s inaugural voyage and has difficulty finding vessel purchasers.

LNG
Representation Image

Following the contract terms, Mitsui OSK Lines must sell their vessel to the project if they cannot assist Arctic 2. However, current restrictions preclude them from carrying out this deal, resulting in a problematic scenario. The US and Japanese governments are working with Mitsui OSK Lines, or MOL, to address this. The first of three ice-breaker LNG vessels will be completed later this year.

The consequences of these interruptions go beyond Mitsui OSK Lines. The Arctic LNG 2 project’s global partners, such as Japan’s Mitsui & Co. and France’s TotalEnergies SE, have announced a force majeure on their involvement, highlighting the project’s more significant difficulties.

The sanctions imposed by the US Department of State in November in reaction to Russia’s war effort and other unlawful activities include targeting ARCTIC LNG 2, the Arctic LNG 2 Project operator, and other entities, providing a broader background to the current situation. This move has made things more difficult for the project’s minority investors, such as TotalEnergies in France, and has made the setbacks even more severe.

These problems affect the timely delivery of LNG vessels and raise concerns about Russia’s objectives to enhance LNG shipments, especially given decreased access to European markets due to geopolitical difficulties.

Reference: Bloomberg

Marine Insight Academy

Online courses for the Maritime industry!

Enroll For Maritime Courses

  • 100 + Free & Premium Courses
  • Learn at your own speed
  • Earn certificates on completing Premium Courses
  • Quizes to evaluate your knowledge
  • Interactive videos

Marine Insight Academy

Enroll For Maritime Courses

  • 100 + Free & Premium Courses
  • Learn at your own speed
  • Earn certificates on completing Premium Courses
  • Quizes to evaluate your knowledge
  • Interactive videos

Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.


Do you have info to share with us ? Suggest a correction

About Author

Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.

About Author

Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.

Read More Articles By This Author >

By subscribing, you agree to our Privacy Policy and may receive occasional deal communications; you can unsubscribe anytime.

BE THE FIRST TO COMMENT

Leave a Reply

Your email address will not be published. Required fields are marked *