Friday, November 27, 2020
Home Oil & Gas Siemens to supply turbines for Russian NOVATEK's Obskiy LNG project

Siemens to supply turbines for Russian NOVATEK’s Obskiy LNG project

German leading manufacturing company Siemens and Russian manufacturer of compressor equipment Kazancompressormash signed a 130 million euros contract, with Russia’s largest private gas producer, NOVATEK, on supplying gas turbines and compressor equipment for the Obskiy liquefied natural gas (LNG) project.

Siemens is set to supply seven SGT-700 turbines to two units of the Obskiy LNG, while Kazancompressormash will install ten compressors in 2021, capable of operating at low temperature. Initially, NOVATEK planned to rely exclusively on Russian equipment but by signing a contract with Siemens, the company seems to have taken another path.

“We have built a natural gas platform both domestically and now internationally with our Yamal LNG project that is one of the most cost-competitive in the industry,” – noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board.

NOVATEK plans to launch the first production train of the Obskiy LNG plant in late 2022 or early 2023. It will consist of three liquefaction trains at 1.6 million tonnes per each unit.
Obskiy LNG is based on the Verkhnetiuteiskoye and West Seyakhinskoye fields with combined gas reserves of 157 billion cubic meters (bcm) and the mineral license for developing these fields runs until 2044.

Novatek rapidly became Russia’s LNG champion after the successful development of Yamal LNG. This year Novatek unveiled ambitious growth plans to double investments, boost output and exports and launch more LNG facilities.

The company has recently announced that it reached a milestone of one trillion cubic meters in cumulative natural gas production since commencing its natural gas field development program.

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