Gazprom and Novatek Set Up LNG Plant

Russian gas supplier Gazprom and independent gas producer Novatek are to set up a liquefied natural gas (LNG) production plant in the remote Yamal peninsula of Siberia.

The venture will carry out pre-front end engineering and design studies, elaborate project documents, work out a plan for the LNG plant construction and a joint program for development of the fields where the company will act as an operator for the facilities development and arrangement.

Matters of financing and a time-scale for final investment decisions will be dealt with by the end of 2013, Gazprom announced in a statement.

Agencies reported that the move is part of a Russian strategy to import more gas to Asian markets.

The new facilities will be near a project already proposed by Novatek to build a 16.5 million tonne LNG facility in partnership with French multinational Total. 

"At the moment we view this as a doubling of production volumes compared to Novatek's initial plans," Gazprom chief executive Alexei Miller told reporters. "With Gazprom's resource base, we could even double output on Yamal."