Technip Energies Complied with Applicable Sanctions in Relation to Arctic LNG 2 Project

Source: 10/19/2023, Location: Asia

In response to the article published in the French daily Le Monde, Technip Energies (Paris:TE) (ISIN:NL0014559478) issues the following statement:

As of February 24, 2022, the date of the invasion of Ukraine, Technip Energies was overseeing the Arctic LNG 2 (ALNG2) project in Gydan, northern Russia. The contract, awarded in 2019, covered engineering, equipment procurement and the construction of three LNG trains.

After disclosing on 3 March 2022 that it was halting all work on new business opportunities in Russia, Technip Energies opened discussions in April 2022 with its client, project partners and suppliers with a view to the Company’s exit from ALNG2, in accordance with applicable sanctions and contractual provisions.

The activities covered by sanctions were suspended as those sanctions entered into force, notably following the publication of the 5th package of European Union sanctions on April 8, 2022, which took effect in May.

Technip Energies has worked with relevant authorities and has complied with the sanctions introduced progressively by the European Union, the United States and the United Kingdom. In view of the number and complexity of sanctions, the Company undertook a thorough analysis of all equipment exports, including thousands of components for the two utilities modules delivered after May 2022, to ensure that the correct customs codes were applied.

Technip Energies stated on October 20, 2022 that, in light of the project’s size and inherent complexity, the exit process was expected to be completed in the first half of 2023. This commitment was fulfilled, and the Company confirmed on July 27, 2023 that it had exited the ALNG2 project.

Technip Energies has acted responsibly in its role on the ALNG2 project through strict compliance with, in order of precedence, international sanctions and its contractual obligations.

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