Novatek, Siemens Sign LNG Partnership
Russia's natural gas producer Novatek (NVTK.ME) and German engineering giant Siemens have signed a strategic partnership agreement that covers cooperation in the liquefied natural gas (LNG) sector.
Novatek said in a press release that the agreement was signed by Novatek Chief Executive Leonid Mikhelson and his Siemens counterpart Joe Kaeser in Moscow.
According to the agreement, the parties intend to strengthen and develop the strategic partnership and cooperation in 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.
“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,” said Leonid Mikhelson, Novatek’s Chairman of the Management Board.
Leonid added: “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.”
According to Siemens AG CEO Joe Kaeser, the new deal significantly strengthens Siemens' cooperation with Novatek and gives an impetus for further cooperation.
The current strategic partnership agreement is the second between the two companies. The first deal was signed in 2013.
PAO Novatek is one of the largest independent natural gas producers in Russia, and in 2017, entered the global gas market by successfully launching the Yamal LNG project