Novatek in ammonia talks with Mitsui

Russian LNG export giant Novatek is reportedly in talks with Japan’s Mitsui for a planned ammonia project in the Arctic.

According to a report by Kommersant on Thursday, Novatek is looking to sell a stake in the planned Obsky Gas Chemistry project.

Mitsui would also buy ammonia produced at the planned Yamal facility which would have a capacity of 2.2 million tons, Kommersant reported citing unidentified sources.

The two firms are already partners in Novatek’s second LNG export project, Arctic LNG 2.

The first stage of the ammonia project could be launched in 2026 and it would also include a CCS development, Kommersant said. The costs could reach up to $2.4 billion, the report said.

Previously, Novatek had planned to build the Obsky LNG project with a capacity of up to 5 million tonnes per year.

However, Novatek earlier this year confirmed plans to produce ammonia, hydrogen and methanol, instead of LNG.

The firm also said in June it had signed a deal with two compatriot banks to secure financing for an ammonia and chemical production plant on the Yamal peninsula.

“Ammonia is a promising low-carbon fuel in great demand in the chemical industry, and an efficient transport carrier of hydrogen,” Novatek’s chief Leonid Mikhelson said then.

Novatek already operates the giant Yamal LNG export project in the Russian Arctic and is building the Arctic LNG 2 terminal on the Gydan peninsula, along with several other developments.

The firm plans to produce 57-70 mtpa of LNG from these projects by 2030.

Most Popular

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

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.

Russian LNG production down in Q1

Russian liquefied natural gas (LNG) production decreased in the first quarter of this year, according to the Russian statistics agency Rosstat.