Chinese yard to invest $122m in drydock expansion after US‑sanctioned past
Zhoushan Tongzhou Offshore Engineering, rebuilt from a US‑sanctioned shipyard, is investing $122m in a new deepwater drydock to boost offshore construction capacity
Expansion comes after the yard was sanctioned for supplying Russia’s Arctic LNG 2 project, prompting a complete ownership restructure and withdrawal from Russian business
ZHOUSHAN Tongzhou Offshore Engineering, reborn from the restructuring of a US‑sanctioned shipyard, is investing Yuan890m ($122m) to expand its offshore construction capacity, according to a government filing.
The company plans to build a new 400 metre drydock in Zhoushan, Zhejiang province.
Designed for deepwater offshore projects, the dock will be capable of delivering annually either a floating liquefied natural gas unit or a floating production, storage and offloading unit; three LNG carriers; four cylindrical FPSOs; four semi‑submersibles or eight floating wind platforms.
The expansion comes less than a year after ZTOE’s predecessor, Zhoushan Wison Offshore & Marine, was sanctioned by the US Department of State in January 2025 for supplying modules to Russia’s Arctic LNG 2 project.
Following the sanctions, parent company Wison New Energies announced a full withdrawal from Russia‑related business and sold its entire stake in Zhoushan Wison to Tongzhou Enterprise Management Partnership, an entity controlled by the Nantong city government.
Industry observers say local government involvement could improve ZTOE’s access to financing, enhance its credibility in international tenders, and provide diplomatic backing to help navigate geopolitical risks.
That said, the impact of US sanctions could remain significant.
Last month, the Delfin LNG project off Louisiana saw US developer Delfin Midstream partner with Siemens Energy, Samsung Heavy Industries and Black & Veatch.
Industry sources say Delfin had originally planned to award Wison New Energy contracts for its second and third FLNG units.
