Novatek Inks Domestic LNG Equipment Deal

Russian independent gas producer Novatek and state Atomenergomash have agreed to co-operate on domestic gas liquefaction technology, they said July 10. As well as saving money by avoiding imports, trains manufactured in Russia will also help insure their projects against the risk of external threats such as sanctions on some kinds of imported goods.

The memorandum notes progress made on making some components of an LNG train, such as coil-wound heat exchangers and medium-tonnage cryogenic pumps, and now sets out their respective obligations to  design, manufacture and test high-tonnage cryogenic pumps, Novatek said.

According to the memorandum, the two will work on installing pumps, heat exchangers and other equipment for Novatek’s LNG projects at Atomenergomash's facilities.

“This memorandum is important for the development of the Russian gas industry and the implementation of our new LNG projects using domestic technologies and equipment,” said Novatek's Alexander Fridman. “Atomenergomash has already fabricated and shipped heat exchangers and cryogenic pumps for Yamal LNG’s Train 4 using Novatek’s patented “Arctic Cascade” gas liquefaction technology. This equipment is unique for the Russian manufacturing industry. We are interested in creating a domestic industry producing high-tonnage equipment for LNG production, thereby reducing capital costs and increasing our global competitiveness. This entails maximising the involvement of the Russian scientific and industrial capabilities."

The statement did not quantify the high-tonnage capacity that is projected, but at 900,000 mt/year, the fourth Yamal LNG train is a lot smaller than the 5.5mn metric tons/year that the first three trains produce, at nameplate; and more in practice. The patented technology is based on a "two-stage liquefaction process that capitalises on the colder ambient temperature in the Arctic climate to maximise energy efficiency during the liquefaction process," it said in March 2018, announcing the patent.