Novatek, Saudi Aramco ink LNG memorandum

Russian LNG export player Novatek signed a memorandum of understanding (MOU) with Saudi Aramco, the Saudi Arabian national oil company, for cooperation on international projects including LNG.

According to the MoU, the two companies agreed to collaborate internationally on natural gas projects, including LNG supplies, development of LNG markets, gas exploration and production projects, as well as research and technology development.

Novatek’s chairman Leonid Mikhelson said Novatek has gained unique and valuable experience of developing LNG-projects in the Russian Arctic area, adding the company’s plan to rapidly grow its LNG production is “attracting international partners” such as Saudi Aramco to jointly collaborate in gas markets.

Media previously reported the two companies were mulling cooperation on Novatek’s second liquefied natural gas export project the Arctic LNG 2 on the Gydan peninsula. Russian news agency, TASS, reported, citing Russia’s energy minister Alexander Novak, that the memorandum of understanding is the first step while specific details for the Arctic LNG 2 project are being worked on.

Novatek’s second project was planned to have a similar output as the Yamal LNG that began exporting in December last year, however, the planned capacity has been bumped to 19.8 million tons per year earlier this month.

LNG World News Staff