Technip Energies Complied with Applicable Sanctions in Relation to the Arctic LNG 2 Project
Regulatory News:
In response to the article published in the French daily Le Monde on October 19, 2023, 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.
About Technip Energies
Technip Energies is a leading Engineering & Technology company for the energy transition, with leadership positions in Liquefied Natural Gas (LNG), hydrogen and ethylene as well as growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management. The company benefits from its robust project delivery model supported by extensive technology, products and services offering.
Operating in 35 countries, our 15,000 people are fully committed to bringing our client’s innovative projects to life, breaking boundaries to accelerate the energy transition for a better tomorrow.
Technip Energies is listed on Euronext Paris with American depositary receipts (“ADRs”). For further information: www.technipenergies.com.
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This Press Release contains forward-looking statements that reflect Technip Energies’ (the “Company”) intentions, beliefs or current expectations and projections about the Company’s future results of operations, anticipated revenues, earnings, cashflows, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are often identified by the words “believe”, “expect”, “anticipate”, “plan”, “intend”, “foresee”, “should”, “would”, “could”, “may”, “estimate”, “outlook”, and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on the Company’s current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on the Company. While the Company believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that the Company anticipates.
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For information regarding known material factors that could cause actual results to differ from projected results, please see the Company’s risk factors set forth in the Company’s 2022 Annual Financial report filed on March 10, 2023, with the Dutch Authority for the Financial
Markets (AFM) and the French Autorité des Marchés Financiers which include a discussion of factors that could affect the Company’s future performance and the markets in which the Company operates.
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