Novatek teams up with USC on its second Arctic LNG project

Russian independent natural gas producer and the operator of the Yamal LNG project signed a deal with United Shipbuilding Corporation (USC) to cooperate on the prospective Arctic LNG 2 project. 

Under the memorandum of strategic partnership and cooperation, the parties plan on working together in the area of producing LNG train modules in Russia as part of the prospective Arctic LNG 2 project.

Novatek’s chairman, Leonid Mikhelson said the company sees good prospects in uniting its efforts with USC in implementing its future LNG projects.

He added that the company will use its experience gained through the construction of the Yamal LNG project to reduce construction costs and enhance the competitiveness of its LNG projects.

The deal with USC, the Russian shipbuilding company, follows the agreement reached with Atomenergomash, a unit of Russian nuclear group Rosatom, to join forces in producing equipment, pipelines and high-tonnage LNG modules, including the use of new domestic steel grades in Russia.