Based on the Memorandum of Cooperation, Gazprom and NOVATEK signed an Agreement on setting up a joint venture for liquefied natural gas (LNG ) production in the Yamal Peninsula.

The joint venture will carry out pre-front end engineering and design studies, elaborate project documents, work out a plan for the LNG plant construction and a joint program for development of the fields where the company will act as an operator for the facilities development and arrangement.

Until the end of the year it is scheduled to approve a comprehensive program for project implementation, including the main project features and deadlines, as well as the timescale for the final investment decision-making, the financial scheme and the terms of financing.

Background

In April 2012 Gazprom and NOVATEK signed the Memorandum of Cooperation (valid until February 1, 2013). The document envisages studying a possibility of establishing joint ventures to build up integrated capacities on LNG production in the Yamal Peninsula.