Novatek, Total and Siemens in Vietnam LNG deal

Russia’s largest independent gas producer and LNG developer, Novatek said on Friday it signed a memorandum of understanding with French oil and gas major Total and German engineering giant Siemens.

Under the memorandum, the companies will pursue opportunities to collaborate on LNG sales and to develop the infrastructure for newly built gas-fired generation plants in the Vietnamese market, according to a Novatek statement.

“We are very interested in infrastructure projects that create effective marketing channels to deliver produced LNG to end-consumers,” said Leonid Mikhelson, chief executive and co-owner of Novatek.

“Together with our partners, we view the Vietnam as an attractive market considering its growing economy and increasing demand for LNG imports,” added Mikhelson.

The three companies are already cooperating on Novatek’s giant Yamal LNG export project that is expected to ship its first cargo soon.

Total has a 20 percent stake in the $27 billion Arctic LNG project while Siemens has supplied various equipment for the export facility including gas turbines and transformers.