NOVATEK and RWE join in on LNG supply and decarbonisation
Novatek, Russia’s natural gas producer, and RWE Supply & Trading, the trading unit of German utility RWE, have signed a memorandum of understanding (MoU) to cooperate on LNG supply and decarbonisation.
Under the MoU, Novatek will supply low-carbon ammonia and hydrogen to RWE. These will originate from Novatek’s planned project Obskiy GCC (Gas Chemical Complex) and go to German and European markets.
The parties also intend to deepen their cooperation in the supply of LNG (including carbon-neutral LNG). In other words, Novatek will amp up its LNG supply to RWE by the expansion of existing spot supplies. There is also a possibility of long-term LNG supplies from the Arctic LNG 2 and other projects of the Russian company.
“We are very well-positioned to benefit from the transition of global economies to low carbon energy sources,” said Lev Feodosyev from Novatek’s management board.“Natural gas including LNG is already replacing other types of fuels with higher carbon footprint.”
In addition, he said the company is already working on decreasing the carbon footprint of LNG produced by their projects. Indeed, this LNG is already low in carbon footprint. It is developing the pre-FEED study for the blue ammonia and hydrogen plant with CCS nearby LNG cluster in Yamal.
In conclusion, this is all done to deliver low-carbon products to final customers in Europe and Asia.