Russia's Arctic LNG 2 Seeks $1 Billion in Damages From South Korea's Hanwha

MOSCOW, Sept 8 (Reuters) – Arctic LNG 2, a liquefied natural gas project led by Russia’s Novatek NVTK.MM, is seeking about $1 billion in damages from South Korean shipbuilder Hanwha Ocean over canceled tanker construction contracts, according to a disclosure by Hanwha.

Arctic LNG 2, which is 60% owned by Novatek, was expected to become one of Russia’s largest LNG plants, with planned output of 19.8 million metric tons a year. But U.S. sanctions imposed over Russia’s actions in Ukraine have complicated its prospects.

Novatek began production at Arctic LNG in December 2023, but cargo deliveries to end-users, all