Novatek signs Arctic LNG 2 equipment deal with Siemens

Russia’s largest independent natural gas producer Novatek said its Arctic LNG 2 project signed a contract with Germany’s Siemens under which the latter will provide equipment for the planned LNG export project in Russia.

The scope of supply under the contract includes three feed gas compressors and six boil-off gas compressors, Novatek said on Friday.

The document also provides for localizing the equipment fabrication for the project’s third train in Russia.

“Siemens and Novatek have a successful working relationship as they supplied gas turbine generators and boil-off gas compressors for our Yamal LNG plant,”  noted Alexander Fridman, Novatek’s first deputy chairman of the Management Board.

“Our next project, Arctic LNG 2, will utilize new technological solutions and employ domestic manufacturers. The supply contract envisages new prospects for localizing the compressor equipment fabrication for the LNG industry, which is consistent with our strategic aim of creating and developing an LNG Center of Excellence in Russia,” he said.

The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. It is based on the hydrocarbon resources of the Utrenneye field.

Novatek has already tagged a joint venture between the Italian contractor Saipem and Turkish oil and gas services company Renaissance for the onshore engineering and construction of the GBS platforms.

Furthermore, Italy’s Nuovo Pignone, which is part of Baker Hughes, a GE company, secured a contract in December to provide turbo machinery equipment for the giant LNG export project in Russia. The agreement provides for the supply of gas turbine compressors and gas turbine generators for the three liquefaction trains for the Arctic LNG 2 project.