Russian Novatek Hires Local Pump Maker for LNG

Russian leading LNG producer Novatek has signed a memorandum on strategic partnership with local pump maker GMS [HMS, in English] Group, aimed at the domestic manufacture of "critical equipment for LNG production."

The memorandum, announced September 30, notes the results already achieved on developing medium-tonnage compressor equipment. According to the memorandum, the two sides intend to pursue long-term co-operation in making and supplying compressors, pumps, and other equipment for Novatek’s LNG projects.

“The HMS Group has already fabricated and shipped compressor equipment for the Yamal LNG project’s Train 4, which is unique for the Russian industry. We see great prospects in further developing our mutual cooperation with the HMS Group on domestically manufactured equipment for our LNG projects,” said Novatek CEO Leonid Mikhelson. “One of the company’s main priorities is using the technological and infrastructure capabilities of Russian domestic enterprises to reduce construction costs and enhance the competitiveness of Novatek’s future LNG projects.”

Novatek has been concerned about the effect that Washington's anti-Russia sanctions could have on its production and export of LNG, which is key to its long-term growth plans. There are also cost benefits in using domestic suppliers, a fact that state-controlled Gazprom has also exploited.