Pavilion, Novatek ink Arctic LNG 2 partnership MoU

Temasek-owned Pavilion Energy signed a memorandum of understanding with Russia’s Novatek for the participation in the latter’s Arctic LNG 2 project.

Under the memorandum of understanding, Pavilion Energy would consider participating in the project as well as booking volumes at the project being developed by Russia’s largest independent natural gas producer, the company said in a statement.

Additionally, the two companies have agreed to look into parentring on LNG supply, trading and optimization, reviewing joint investments and capacity leasing arrangements for LNG carriers, storage, reload and transshipment facilities.

Novatek’s second Arctic LNG export project raised a lot of interest and the company has already signed memorandums of understanding with Japanese and Chinese partners as well as the Saudi Arabian national oil company, Saudi Aramco.

France’s Total has agreed to take a 10 percent stake in the Arctic LNG 2 project with an option for Total to add further 5 percent.

The final investment decision on the Arctic LNG 2 project is expected in 2019.

The facility to be assembled on gravity-based platforms will have an annual production capacity of 19.8 million tons of LNG, with the Italian engineering company Saipem in charge of the construction of the gravity-based structures.

 

LNG World News Staff

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