China Signs $1.6B Engineering Deal for Siberian LNG Project


HONG KONG, July 10 (Reuters) - A subsidiary of Chinese state oil giant China National Offshore Oil Corporation (CNOOC) has signed an around $1.6 billion deal to build equipment for a liquefied natural gas project in Siberia, the company said late on Wednesday.

Under the agreement, CNOOC's Offshore Oil Engineering Co will build "core modules" for the liquefication process on the project in Yamal in the Russian Arctic, according to a statement posted on CNOOC's website (

Novatek, Russia's second-largest gas producer, is developing the $27 billion Yamal LNG project with France's Total and China's top energy group, state-owned China National Petroleum Corporation (CNPC).

The first production unit, with annual capacity of 5.5 million tonnes, is due to be launched in 2017.

In May, CNPC signed a deal to buy 3 million tonnes of LNG per year from the Yamal project, as did Russia's Gazprom.

CNPC also agreed in May to buy 38 billion cubic meters of gas per year from Russia's Gazprom, in a deal unofficially valued at $400 billion.

($1 = 6.1972 Chinese Yuan Renminbi)

(Reporting by Adam Rose; Editing by Joseph Radford)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Expertise: Electrical Technician
Location: Odessa, TX
Facility Engineer
Expertise: Facilities Engineer
Location: North Dakota, ND
Structural Engineer, USA
Expertise: Structural Engineering
Location: USA
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours