Photo: Novatek LNG fueling station; Source: Novatek

Novatek subsidiary to develop Russia’s LNG fuel market

Russia’s largest independent natural gas producer Novatek has decided to create a subsidiary called ‘Novatek – LNG Fuel’ which will be in charge of developing Russia’s LNG fuel market.

Novatek said on Thursday that the newly formed subsidiary would construct small-scale LNG plants, facilitate LNG wholesale markets, and develop a retail network for LNG as a motor fuel, as well as provide LNG as part of the autonomous gasification program in the Russian domestic market.

It is worth noting that Novatek has been actively developing the production and sales of LNG as a motor fuel. In 2020, the company launched a small-scale LNG plant in Magnitogorsk in the Chelyabinsk Region with a capacity of 40 thousand tons per annum.

Currently, the company owns 12 LNG fueling stations in Russia and plans to further expand the production and distribution networks for clean-burning fuels for transport.

Leonid Mikhelson, Novatek’s chairman of the management board, said: “We are creating a dedicated subsidiary to develop the domestic LNG fuel market as part of our commercial marketing strategy.

The use of LNG as a motor fuel can reduce carbon emissions compared to diesel or other petrol products, as well as significantly reduce harmful particles emitted into the atmosphere, which contributes to the decarbonization of the transport industry and the protection of the environment“.