Novatek inks financing deal for Yamal ammonia plant

Russia’s largest LNG exporter Novatek said it has signed a deal with two compatriot banks to secure financing for an ammonia and chemical production plant on the Yamal peninsula.

Novatek signed a memorandum of understanding with Sberbank and Gazprombank on Friday.

Under the memorandum, “the parties intend to organize financing to construct a gas chemical plant in close proximity to Sabetta to produce low-carbon ammonia, hydrogen, as well as other gas chemistry products that reduce greenhouse gas emissions into the atmosphere,” Novatek said in statement.

“Ammonia is a promising low-carbon fuel in great demand in the chemical industry, and an efficient transport carrier of hydrogen,” Novatek’s chief Leonid Mikhelson, said.

“The company is considering various concepts for a gas chemical plant in order to select the most efficient option. We plan to capture the carbon dioxide emitted from the ammonia production by injecting the CO2 into underground reservoirs to ensure the supply of clean energy to Europe and the Asia-Pacific region,” Mikhelson said.

Novatek already operates the giant Yamal LNG export project in the Russian Arctic and is building the Arctic LNG 2 terminal on the Gydan peninsula, along with several other developments.

Novatek inks hydrogen deal with Sevestral

Besides the financing deal for the Yamal ammonia plant, Novatek has also signed a memorandum of understanding with Russian steel and mining firm Severstal.

The duo plan to cooperate in the field of alternative and hydrogen energy to reduce greenhouse gas emissions, Novatek said in a separate statement.

Moreover, the memorandum provides for the implementation of a joint pilot project to produce “blue” hydrogen from natural gas and by using technologies for carbon capture and storage, the independent producer said.

The two firms intend to jointly develop technical requirements, standards and engineering solutions for the manufacturing and supply of hydrogen transport pipelines, turbines, hydrogen storage systems and hydrogen transport tanks.

Furthermore, the duo also agreed to cooperate in the production and supply of hydrogen, development of technological solutions for the use of fuel types based on hydrogen and its carriers, specifically ammonia.

“Steel producers are one of the largest industrial consumers of natural gas, and reducing greenhouse gas emissions is a new prospective area for our mutually beneficial cooperation,” Mikhelson said.

“The use of carbon capture and storage technologies, as well as a hydrogen fuel blend will reduce our joint carbon footprint and increase the competitiveness of products manufactured by the Russian steel industry,” he said.

Most Popular

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

GTT develops new LNG fuel tank

French LNG containment giant GTT has developed a new cubic-shaped LNG fuel tank for commercial vessels, with a particular focus on LNG-fueled container vessels.

More News Like This

Russian LNG production down 4.2 percent in January-July

Russian liquefied natural gas (LNG) production dropped 4.2 percent in January-July this year compared to the same period in 2024, according to the Russian statistics agency Rosstat.

Novatek reports lower H1 profit

Russian LNG producer Novatek reported a 34 percent drop in its net profit in the first half of this year.

Russian LNG production continues to decline

Russian liquefied natural gas (LNG) production continued to decrease in June compared to last year, according to the Russian statistics agency Rosstat.

EU lifts sanctions against LNG carrier trio

The European Union has lifted sanctions against three ice-class liquefied natural gas (LNG) tankers operated by Japan's shipping giant MOL and intended to serve Novatek's Arctic LNG projects in Russia.