South Korean shipbuilder Hanwha Ocean is facing a claim of about $1 billion from Russia’s Arctic LNG 2 project over cancelled contracts to build LNG carriers.
Arctic LNG 2 has filed a claim with the Singapore International Arbitration Centre over a terminated shipbuilding contract, Hanwha Ocean said in a disclosure dated Sept. 3.
The claim is worth 1.37 trillion won, or about $1.02 billion.
The dispute involves three LNG carriers. Hanwha Ocean had agreed to build six Arc7 tankers, three for Russia’s Sovcomflot and three for Japan’s Mitsui O.S.K. Lines.
Hanwha Ocean, formerly known as Daewoo Shipbuilding & Marine Engineering, has previously said the three tankers ordered by Sovcomflot were cancelled because of sanctions on Russia.
Arctic LNG 2 Hit by US Sanctions
Arctic LNG 2 is led by Russia’s Novatek, which owns 60% of the project. The project was expected to become one of Russia’s biggest LNG plants, with a planned output of 19.8
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