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French services company lands deal to help build Yamal LNG
by Daniel J. Graeber
Paris (UPI) May 15, 2013


Former Soviet republic Lithuania to get gas price discount from Russia
Moscow (UPI) May 15, 2013 - A deputy director at the Russian energy company Gazprom said Thursday the company will reduce the price it charges Lithuania for natural gas by 20 percent.

Dmitry Khandoga, the deputy director for Gazprom's external activity department, confirmed to state news agency RIA Novosti , that the Lithuanian discount would be "around 20 percent."

The new price would go into force on July 1. The discount would put the price at $370 per 1,000 cubic meters, the standard purchase volume.

The government in Lithuania, a former Soviet republic, has been at odds with Gazprom over its gas prices. In November, Joaquin Almunia, the vice president for competition policy in the European Commission, said Lithuania was among the Baltic countries expressing concern about abuses in the region's natural gas sector.

Russian Prime Minister Dmitry Medvedev said Thursday he was frustrated by an energy market dependent on regional politics.

"We want predictable rules of the game on the energy market that won't change unilaterally and won't depend on political speculations," he said.

French energy services company Technip said Thursday it secured a contract to help build a liquefied natural gas terminal in Russia's Yamal Peninsula.

The French company said it landed a "very major contract" for engineering, procurement and construction for a liquefied natural gas facility from a joint venture led by Russian independent gas producer Novatek.

The Yamal LNG facility will be able to process as much as 16.5 million tons per year once it goes into service in 2017.

Technip said the Yamal project will be among the largest in the world. No value of the contract was given.

Last year, Novatek announced with French energy company Total it made a decision to develop the Yamal LNG facility in the Far North of Russia. The project will draw from the South-Tambeyskoye natural gas field.

The project includes the construction of sea port infrastructure and an international airport. As many as 16 ice-class carriers will be designated to ship LNG year-round to global consumers.

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