Russian LNG player Novatek ties up with Germany’s Siemens

For illustration purposes only (Image courtesy of Novatek)

Russia’s largest independent natural gas producer and LNG operator, Novatek has signed a partnership and cooperation deal with German engineering giant Siemens.

Under the deal signed on Wednesday, the duo plans to strengthen and develop the strategic partnership and cooperation in various fields.

This includes integrated gas-to-power projects on a “turn-key” basis inclusive of LNG supply, downstream and power generation, large-, mid- and small-scale LNG liquefaction plants and other topics of mutual interest, according to a Novatek statement.

“Novatek plans to significantly increase production of natural gas and LNG, and we are interested in developing the whole natural gas value chain to enhance the competitive advantages of our scalable low-cost LNG projects.” Leonid Mikhelson, Novatek’s chief said in the statement.

“We are satisfied with our experience of working with Siemens as a reliable contractor providing equipment to our Yamal LNG project, and we are going to expand this cooperation not only in Russian Federation, but also in other countries,” Mikhelson added.

Novatek is currently only exporting LNG from its giant Yamal project in the Russian Arctic.

However, the company is planning several additional projects, including the Arctic LNG 2 project, which could place Novatek in a group of world’s largest producers of the fuel as a single company by 2030.