Novatek, Linde in strategic LNG tie-up

Novatek of Russia, the developer of the Yamal LNG project on Thursday signed a strategic partnership and cooperation agreement with Linde. 

Under the agreement signed on Thursday, the two companies will cooperate in localizing the construction of process modules and respective sourcing of equipment in Russia and the development of solutions for Novatek’s LNG projects.

Chairman of the management board of Novatek, Leonid V. Mikhelson, added that the agreement will give an impetus to setting up new and loading the existing industrial capacities in Russia as well as help in optimizing capital expenditure on LNG projects.

Novatek has also signed a cooperation agreement with Sberbank for financial and consulting services. Sberbank is one of the two providers of a €3.6 billion loan under which the Novatek-operated Yamal LNG project recently received the first tranche in the amount of €1 million.

Once completed the Yamal LNG project will have the capacity to produce 16.5 mtpa of LNG, with the production from the first train set to start in 2017.

Shareholders in the project include Novatek with a 50.1 percent stake, CNPC and Total with 20 percent stake each and China’s Silk Road Fund with a 9.9 percent stake.

LNG World News Staff