Russian LNG giant Novatek inks ammonia supply deal with Germany’s Uniper

Rusian LNG giant Novatek said it has signed a deal to supply ammonia from its planned Obskiy gas chemical complex to Germany’s Uniper.

Under the term sheet, Novatek would deliver up to 1.2 million tons of low-carbon ammonia per year to primarily German market, the firm said on Wednesday.

Also, the independent gas and LNG producer said the product price would be indexed to relevant European and global benchmarks.

The term sheet details the terms of the supply from Novatek’s Obskiy GCC project, which would include CCS facilities.

Moreover, Uniper would receive the fuel at its planned ammonia import terminal in Wilhelmshaven. The facility would feature an ammonia cracker operating with renewable power, Novatek said.

Uniper would transform the imported ammonia into gaseous hydrogen and feed it into the future German hydrogen pipeline system, as well as supply it directly as a clean feedstock and as a fuel, it said.

This term sheet follows the signing of a hydrogen cooperation deal between the duo in January this year.

Novatek’s chief executive and Russian billionaire Leonid Mikhelson said the firm considers ammonia as the most efficient hydrogen carrier for seaborne transportation.

“We are now at the pre-FEED stage for a low-carbon ammonia and hydrogen plant with CCS facilities, and signing of term sheets for long-term supply demonstrates growing demand for low-carbon products, which is an essential precursor for the final investment decision on this project,” he said.

“The plant will be located next to our LNG cluster in Yamal in order to minimize the infrastructure costs and provide the most competitive clean energy supplies to the global market,” Mikhelson said.

Most Popular

LNG Canada to send third cargo

Shell-led LNG Canada is expected to soon ship the third cargo of liquefied natural gas from the Kitimat facility, according to shipping data.

Hyundai LNG Shipping sells another carrier for scrap

South Korea's Hyundai LNG Shipping has sold another steam liquefied natural gas (LNG) carrier for scrap, according to brokers.

Technip Energies wins contract for Eni’s Coral Norte FLNG

France-based LNG engineering giant Technip Energies has won a contract for preliminary work on Eni's second FLNG project in Mozambique, Coral Norte (Coral North).

More News Like This

Novatek’s gas sales climb in Q2

Russian LNG exporter Novatek reported a rise in its natural gas sales, including LNG, in the second quarter of this year.

Russian LNG production drops in May

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

Russia’s Novatek in LNG truck move

Russian LNG producer Novatek and compatriot National Carrier (NATCAR) are joining fores to develop the market for LNG as fuel for trucks.

Russian LNG production drops in April

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