Moscow Times: China, Russia Sign $1.6Bln Deal on Siberian LNG Project

A subsidiary of Chinese state oil giant China National Offshore Oil Corporation, or CNOOC, has signed a deal worth about $1.6 billion to build equipment for a liquefied natural gas project in Siberia, the company announced.

Under the agreement, CNOOC's Offshore Oil Engineering Co will build "core modules" for the liquefication process on the project in Yamal in the Russian Arctic, according to a statement posted Wednesday on CNOOC's website.

Novatek, Russia's second-largest gas producer, is developing the $27 billion Yamal LNG project with France's Total and China's top energy group, state-owned China National Petroleum Corporation, or CNPC.

The first production unit, with annual capacity of 5.5 million tons, is due to be launched in 2017.
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