Novatek forms Russian small-scale LNG unit

Russian LNG exporter Novatek said it would create a unit to focus on developing the small-scale market in the country.

Novatek – LNG Fuel would construct small-scale plants, facilitate LNG wholesale markets but also develop a retail network for LNG as a fuel for vehicles, the firm said in a statement on Thursday.

In addition, the unit will provide LNG as part of the autonomous gasification program in the
Russian domestic market.

Novatek, the operator of the giant Yamal LNG plant and the upcoming Arctic 2 facility, has been actively developing the production and sales of LNG as a fuel for vehicles.

In 2020, the company launched a small-scale LNG plant in Magnitogorsk, Chelyabinsk region with a capacity of 40 thousand tons per annum.

Moreover, the company is developing a network of LNG fueling stations in Europe but also Russia. According to Novatek, it currently has 12 LNG fueling stations in Russia.

“We are creating a dedicated subsidiary to develop the domestic LNG fuel market as part of our commercial marketing strategy,” Novatek’s chief Leonid Mikhelson, said.

“The use of LNG as a motor fuel can reduce carbon emissions compared to diesel or other petrol products, as well as significantly reduce harmful particles emitted into the
atmosphere, which contributes to the decarbonization of the transport industry and the protection of the environment,” he said.

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