Russian Novatek, Italian SACE in LNG Pact

Laxman Pai
Wednesday, December 19, 2018

Russian gas giant Novatek and SACE SIMEST, the Italian export credit company part of CDP Group, have finalized an agreement on strategic cooperation in the liquefied natural gas (LNG) projects, including Arctic LNG 2.

"PAO Novatek and SACE signed a Memorandum on Strategic Cooperation in relation to the Company's current and future LNG projects. The parties agreed to develop long-term cooperation on the Arctic LNG 2 project and potential new LNG projects involving Italian suppliers and engineering companies," said a statement from Novatek.

“We successfully cooperated with SACE in the financing of our Yamal LNG project” noted Novatek’s Chairman of the Management Board Leonid Mikhelson.

“Today’s signing of our Memorandum with SACE creates new opportunities for mutually beneficial cooperation with Italian businesses on our future LNG projects. We welcome the interest of international export credit agencies to participate in the financing of our Arctic LNG projects,” Leonid added.

Alessandro Decio, CEO of SACE, stated: “We are very keen to strengthen our partnership with Novatek, one of the key players in natural gas sector worldwide. The agreement will disclose huge opportunities for Italian companies operating in Oil & Gas, a key sector for our exports where Italian technology and know- how is well recognized globally. I hope this will be a step towards a win-win and long-term relationship with Novatek, especially looking forward to the Arctic LNG 2 project. It will also strengthen our commitment to the Russian market, traditionally strategic both for us and Italian companies”.

SACE SIMEST and Novatek have already cooperated successfully in previous years: in 2016, SACE guaranteed a EUR 400 million loan to finance the construction of the Yamal LNG liquefaction plant in Russia, owned by Novatek, China's CNODC group, Total, and the Silk Road Fund.

The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The Project is based on the hydrocarbon resources of the Utrenneye field.

As of 1 December 2018, the Utrenneye field’s reserves under the Russian reserves classification totaled 1,978 billion cubic meters of natural gas and 105 million tons of liquids. OOO Arctic LNG 2 owns an LNG export license.

Categories: Contracts LNG Arctic Operations

Related Stories

CIP Reaches Financial Close for Offshore Wind Farm in Taiwan

Marine Masters Secures Wellhead Platforms Installation Job Off India

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Japan's Japex Shifts Back to Oil and Gas Investments

Tokyo Gas Enters LNG Market in Philippines

Japan's Mitsui Eyes Alaska LNG Project

European LNG Imports Up with Asian Influx

EnQuest to Acquire Harbour Energy's Vietnamese Assets

Petronas to Retain National Authority After Sarawak Gas Deal

Current News

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

The Future of Long-Idle Drillships: Cold-Stacked or Dead-Stacked?

TMC Books Compressors Orders for FPSO and LNG Vessels

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com