Russian LNG exporter Novatek said it had signed a non-binding memorandum of understanding with India’s Deepak Fertilisers and Petrochemicals Corporation to supply the latter with LNG.
Under the memorandum, Novatek would deliver spot and long-term LNG supplies to Deepak Fertilisers, including from the Arctic LNG 2 project, according to a statement issued on Monday.
In addition, the two firms also intend to cooperate in long-term supply of hydrogen and ammonia produced with the use of carbon capture and underground storage, cracking, and renewable energy sources at Novatek’s future gas chemical site in Yamal.
Novatek said that the pre-FEED study for the gas chemical complex was completed in 2022.
“Mutually beneficial energy cooperation between our countries is actively developing, and the signed MoU will contribute to its further strengthening,” Novatek’s chief Leonid Mikhelson said in the statement.
“The high-quality low-cost resource base as well as advanced process and logistical solutions will allow Novatek to supply competitive LNG with minimal carbon footprint to India’s energy market, one of the fastest-growing markets globally,” he said.
“Cooperation in the area of low-carbon hydrogen and ammonia, which we intend to produce along with LNG within an integrated cluster, will facilitate the region’s economic development as well as addressing the relevant environmental and climate issues,” Mikhelson said.
Novatek sold 8.45 bcm of LNG on international markets last year, compared to 7.95 bcm in 2021.
The firm currently exports LNG via its Yamal LNG plant and the mid-scale facility in Vysotsk but it is also building the Arctic LNG 2 plant.
This 19.8 mtpa project has faced many difficulties due to the introduction of sanctions by the US and the European Union on Russia and Russian firms.
However, Novatek still plans to launch the first Arctic LNG 2 GBS in late 2023.