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Originally published Wednesday, April 3, 2013 at 2:59 AM

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Japan Gas, Technip of France in Russia LNG project

JCG Corp., a Japanese engineering company, and French oilfield services company Technip S.A. say they have won a contract for a liquefied natural gas plant in central Russia.

The Associated Press

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TOKYO —

JCG Corp., a Japanese engineering company, and French oilfield services company Technip S.A. say they have won a contract for a liquefied natural gas plant in central Russia.

JCG said in a statement Wednesday that the deal would be a first step in entering Russia's LNG sector.

After decades of tensions over a territorial dispute, resource-scarce Japan and Russia are discussing various energy deals that would help Moscow increase sales in Asia.

The consortium between JCG and Technip will provide cost estimates and engineering services for an LNG plant in central Russia's Yamal Peninsula that is being built by JSC Yamal, a Russian-French joint venture.

Assuming the project is deemed feasible, JCG and Technip would build the plant, with an annual capacity of 16.5 million tons.

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