Russia’s Novatek and Germany’s RWE sign blue ammonia and LNG MoU

Richard Ewing

07-Dec-2021

LONDON (ICIS)–Russian gas supplier Novatek and Germany’s RWE Supply & Trading on Tuesday signed a memorandum of understanding (MoU) for mutual co-operation in the field of liquefied natural gas (LNG) supply and decarbonisation.

The MoU envisages the supply by Novatek to RWE of low-carbon ammonia and hydrogen (blue ammonia/hydrogen) from the former’s planned Obskiy gas chemical complex project, for delivery to German and European markets.

The pair will also look to deepen their co-operation in supply of LNG – including carbon-neutral LNG – through the 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 projects.

“We are very well positioned to benefit from the transition of global economies to low-carbon energy sources,” said Lev Feodosyev, first deputy chairman of Novatek.

“Natural gas, including LNG, is already replacing other types of fuels with a 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 preliminary front end engineering design (pre-FEED) study for the blue ammonia and hydrogen plant with CCS [carbon capture and storage] facilities nearby our LNG cluster in Yamal for the delivery to final customers of low-carbon products in Europe and Asia.”

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