Arctic LNG 2 Sues Hanwha Ocean for $1B
A Russian operator of a similarly named project filed a lawsuit with the Singapore International Arbitration Centre over the termination of contracts for the construction of three LNG carriers of ice class.
Consensus
- Arctic LNG 2 filed a claim against Hanwha Ocean in the Singapore International Arbitration Centre.
- The claim is related to the termination of contracts for three Arc7-class LNG carriers.
- The original contracts were for three LNG carriers with a capacity of 172,500 cubic meters each.
- The total value of the contracts was approximately $850 million.
- The initial delivery deadline was set for July 31, 2023.
- The contracts were terminated due to challenges following the start of the special military operation and Western sanctions against Russia.
- Arctic LNG 2 claims Hanwha Ocean violated agreement terms during the termination process.
- The dispute involves three Russian shipowners: Elixon, Azoria, and Glorina.
Points of divergence
- Arctic LNG 2's claim amount is approximately 1.37 trillion South Korean won ($1 billion), which is equivalent to 22.2% of the contract value. — interfax
- In May 2023, the three Russian shipowners initiated arbitration at SIAC and demanded up to 1.159 trillion South Korean won ($862 million). — interfax
- Arctic LNG 2 claims Hanwha Ocean breached 'intervention agreements' that granted it rights in case of contract default. — interfax
- Arctic LNG 2 claims the shipyard violated rights under the agreements during contract termination. — vesti
Coverage (2 sources)
- Arctic LNG 2 filed billion-dollar lawsuit against South Korean Hanwha Ocean — Вести
- Arctic LNG 2 demands Hanwha Ocean compensate $1 billion in losses — Интерфакс