NOVATEK and RWE Sign MOU on Decarbonization and LNG
Moscow, 7 December 2021. PAO NOVATEK (“NOVATEK” and/or the “Company”) and RWE Supply & Trading GmbH (“RWE”) signed a Memorandum of Understanding (“MOU”) to mutually cooperate in the field of LNG supply and decarbonization.
The MOU envisages the supply by NOVATEK to RWE of low-carbon ammonia and hydrogen to be produced at the Company’s planned project Obskiy GCC (Gas Chemical Complex) and delivered to German and European markets.
The Parties also intend to deepen their cooperation in supply of LNG (including carbon-neutral LNG) by NOVATEK to RWE by expansion of existing spot supplies as well as possible long-term supplies of LNG to be produced by the Arctic LNG 2 and other NOVATEK’s projects.
“We are very well positioned to benefit from the transition of global economies to low carbon energy sources,” said Lev Feodosyev, NOVATEK’s First Deputy Chairman of the Management Board. “Natural gas including LNG is already replacing other types of fuels with higher carbon footprint, and we are working on decreasing the already low carbon footprint of LNG produced by our projects in the Russian Arctic. Now we are undertaking the pre-FEED study for the blue ammonia and hydrogen plant with CCS facilities nearby our LNG cluster in Yamal for the delivery to final customers of low-carbon products in Europe and Asia.”
PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.