Novatek Signs LNG Equipment Deal
The Russian natural-gas company Novatek (NVTK.ME) and Atomenergomash, a mechanical engineering division of the Rosatom State Corporation, have signed a memorandum on strategic partnership and localizing the fabrication of critical equipment for liquefied natural gas (LNG) production.
Novatek said that under the memorandum, the two companies will cooperate in the long term to localize the fabrication of pumps, heat exchangers and other equipment for Novatek's LNG projects at Atomenergomash's facilities.
The Memorandum notes the results already achieved on the fabrication of coil-wound heat exchangers and medium-tonnage cryogenic pumps, and establishes the obligations of the Parties on design, manufacturing and conducting pilot tests of high-tonnage cryogenic pumps.
According to the Memorandum, the Parties intend to pursue long-term cooperation to localize the fabrication of pumps, heat exchangers and other equipment for Novatek’s LNG projects at the facilities of Atomenergomash.
“This memorandum is important for the development of the Russian gas industry and the implementation of our new LNG projects using domestic technologies and equipment,” noted Alexander Fridman, Novatek’s First Deputy Chairman of the Management Board.
“Atomenergomash has already fabricated and shipped heat exchangers and cryogenic pumps for Yamal LNG’s Train #4 utilizing Novatek’s patented “Arctic Cascade” gas liquefaction technology. This equipment is unique for the Russian manufacturing industry. We are interested in creating a domestic industry producing high-tonnage equipment for LNG production, thereby reducing capital costs and increasing our global competitiveness. This entails maximizing the involvement of the Russian scientific and industrial capabilities,” Alexander added.