Novatek, Siemens ink pact to decarbonize LNG production

Russian independent producer Novatek and a unit of German engineering giant Siemens signed a deal aimed at decarbonizing LNG production.

Novatek and Siemens Energy signed a strategic partnership and cooperation agreement on Thursday, according to a statement.

Under the deal, the duo plans to jointly develop and implement high-tech solutions to produce LNG, electricity, hydrogen and other products.

This is in order to maintain sustainable development initiatives and achieve the parties’ goals to reduce their carbon footprint and increase environmental efficiency, the statement said.

As part of the agreement, the duo will start implementing a project to replace fuel natural gas used in the production of electricity and LNG with carbon-neutral hydrogen.

“We have a long and successful track record of mutual cooperation with Siemens Energy who is a key equipment supplier for both our Yamal LNG and Arctic LNG 2 projects,” Novatek’s chief executive and Russian billionaire Leonid Mikhelson said.

Novatek’s strategy to expand LNG production in the Arctic region is based on “utilizing state-of-the-art technological solutions that meet and/or exceed stringent environmental requirements,” he said.

“Our further collaboration with Siemens Energy to decarbonize our LNG production will contribute significantly to the mitigation of climate change,” Mikhelson said.

He added this is of “paramount importance” to reduce Novatek’s carbon footprint in the Arctic ecosystem.

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