Novatek, Siemens Extend Co-operation

The CEOs of Russian independent producer Novatek and of German engineering giant Siemens signed a partnership agreement October 3 during Russian Energy Week that could see them working on gas-to-power projects globally.

The two sides intend to strengthen and develop the strategic partnership and co-operation in integrated gas-to-power projects on a “turnkey” basis inclusive of LNG supply, downstream and power generation, large-, mid- and small-scale LNG liquefaction plants and other topics of mutual interest, they said. 

“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 scaleable low-cost LNG projects,” said Leonid Mikhelson.

“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 co-operation not only in Russian Federation, but also in other countries.” So far, Russian LNG has avoided Europe with the exception of Spain and Portugal, markets beyond the reach of Gazprom, Russia's monopoly exporter.

Novatek, its part-owner Total, and Siemens also last year agreed to consider cooperation in the LNG and gas-fired sectors in Vietnam.

Siemens has long operated successfully in Russia, especially with state-run Gazprom with which it signed a strategic partnership seven years ago. Their two CEOs met March 2018 and Siemens plans to start up a Gazprom-owned up-to-360 MW gas-fired power plant in Grozny, Chechnya, next year.