Image Credit: “Unique NSR Voyage delivers a module for Arctic LNG 2,” available at Yahoo Images (11/04/2024).
Two heavy-lift vessels from China have demonstrated remarkable resilience, arriving off the coast of the sanctioned Arctic LNG 2 project in Russia after a challenging five-week journey through early winter sea ice. The ships, Ocean 28 and Na Feng Zhi Xing, transport large-scale power generation modules manufactured by Wison New Energies, a Chinese engineering firm. These modules, which are crucial for commissioning the second train of Russia's flagship liquefied natural gas (LNG) project, will significantly contribute to the project's energy output and operational capacity.
The vessels covered over 1,500 nautical miles through partially ice-covered waters throughout their voyage, often progressing at slow speeds of just 1-2 knots while navigating broken first-year ice. Ocean 28, in particular, does not have ice classification, making the journey even riskier. As they approached the end of their route, the vessels were escorted by the nuclear icebreaker Sibir and reached open waters in the western Kara Sea. A third vessel, Hunter Star, is still en route with the remaining sections of the power station, about a week behind.
The timely arrival of the power plant modules is of paramount importance for Novatek, the majority owner of Arctic LNG 2, to launch the 6.6 million tonnes per annum (mtpa) LNG train by 2025. Currently anchored at the mouth of Ob Bay, approximately 150 nautical miles from the Utrenniy terminal, unloading the 5,000-7,000-tonne modules will take several days and require careful coordination with tidal conditions. These modules are not just components but strategic pieces that will shape the future of the project.
In the past 24 months, Chinese shipyards have defied U.S. sanctions, continuing to provide material support to Russia’s LNG project. This support, particularly the delivery of the power plant modules, is a significant geopolitical move that challenges the effectiveness of the sanctions. While Wison New Energies had previously announced a cessation of cooperation, it proceeded with the shipment, denying direct involvement. This delivery poses a significant challenge to U.S. authorities seeking to halt the Arctic LNG 2 project. Unlike other sanctioned entities, Wison has strong ties to Western partners, and actions against the company could impact its relationships in Europe and the U.S., especially after signing a strategic agreement with U.S.-based Chart Industries.
Speculation about Wison retracting the modules after the delivery attempt became public has yet to materialize. Industry analysts are puzzled by the risk Wison has taken with its international business, suggesting possible pressure from the Chinese government to fulfill commitments to its Russian ally. This contrasts with a prior incident in July when Wison recalled another set of modules shortly before arriving in Russia, highlighting the complex dynamics in the Arctic energy landscape.
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