Russian independent LNG producer Novatek and a unit of German energy firm RWE have signed a memorandum of understanding to cooperate in the field of LNG supply and decarbonization.
Under the deal, Novatek would supply to RWE Supply & Trading low-carbon ammonia but also hydrogen from the company’s planned Obskiy gas chemical complex, according to a Novatek statement.
The fuel would land in German and European markets.
In addition, the two firms also intend to deepen their cooperation in LNG supply, including carbon-neutral LNG.
Novatek would supply LNG to RWE by means of expanding existing spot supplies. This also includes possible long-term supplies of LNG from the Arctic LNG 2 project and other Novatek’s projects, the firm said.
“Natural gas including LNG is already replacing other types of fuels with higher carbon footprint, and we are working on decreasing the already low carbon footprint of LNG produced by our projects in the Russian Arctic,” Lev Feodosyev, Novatek’s first deputy chairman of the management board, said.
“Now we are undertaking the pre-FEED study for the blue ammonia and hydrogen plant with CCS facilities nearby our LNG cluster in Yamal for the delivery to final customers of low-carbon products in Europe and Asia,” he said.