The European Commission on Tuesday said it has granted an approval on Tuesday to a joint venture of Russia's Sibur-controlled NIPIgazpererabotka, UK-based TechnipFMC and Germany's Linde that will provide engineering and design services for natural gas liquefaction (LNG) projects in Russia.
The joint venture will be active in the provision of front-end engineering and design (FEED), project documentation and capital expenditures estimates, as well as engineering and services for procurement, construction, installation and commissioning of liquid natural gas plants on concrete gravity-based structures, the commission said.
"The European Commission has approved under the EU Merger Regulation the creation of a joint venture…
The Commission concluded that the proposed acquisition would raise no competition concerns because the companies' combined market shares remain very limited on the markets concerned.
The transaction was examined under the simplified merger review procedure," the commission said in a statement.
Research and Design Institute for Gas Processing (NIPIgazpererabotka), controlled by Sibur Group, provides services for the oil and gas companies and other industries on the Russian market.
TechnipFMC offers services related to the oil and gas industry. Linde is active globally in industrial and medical gases, equipment, engineering and services sectors.
On May 3, Novatek signed an agreement with Technip, Linde and NIPIgaz on the main conditions for designing and developing future LNG plants based on gravity-based structures for Arctic LNG 2 project, as well as subsequent Novatek’s LNG projects.
Novatek also signed the license agreement with Linde to purchase Linde’s license on natural gas liquefaction technology for Arctic LNG 2 project.
Arctic LNG 2 is Novatek's second LNG project, the first one was Yamal LNG. It is scheduled to be launched in 2022-2025. Gas deposits of Gydan Peninsula will be its resource base.