Russian Energy Giant Novatek Says Signed Deal Localizing Production Of LNG Equipment

Russian Energy Giant Novatek Says Signed Deal Localizing Production of LNG Equipment

Russia's second largest gas producer, Novatek, has signed an agreement with HMS Group, a Moscow-based engineering company, on the localization of the production of liquefied national gas (LNG) equipment, Novatek said on Monday in a statement

MOSCOW (UrduPoint News / Sputnik - 30th September, 2019) Russia's second largest gas producer, Novatek, has signed an agreement with HMS Group, a Moscow-based engineering company, on the localization of the production of liquefied national gas (LNG) equipment, Novatek said on Monday in a statement.

"NOVATEK... and HMS Group signed a Memorandum on Strategic Partnership and Localizing the Fabrication of Critical Equipment for LNG Production... The Memorandum notes the results already achieved on developing medium-tonnage compressor equipment. According to the memorandum, the parties intend to pursue long-term cooperation to localize the fabrication of compressors, pumps, and other equipment for NOVATEK's LNG projects," the statement read.

Leonid Mikhelson, the chairman of Novatek's management board, said that the deal would lower the cost of constructing LNG terminals.

Novatek entered the LNG business in 2017 with the large-scale Yamal project, followed by the Arctic LNG 2 project. Director-General of Arctic LNG 2 Oleg Karpushin said in May that the plant's first line that will liquefy natural gas would be put into operation in the first quarter of 2023.

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