Novatek converts Obsk LNG to green fuels: press
Russia's Novatek has decided to reconfigure its Obsk LNG project in the Russian Arctic to produce ammonia, hydrogen and methanol, CFO Mark Gyetvay revealed at an online conference on June 23, Reuters reported.
Novatek had aimed to take a final investment decision on Obsk LNG in 2020 but delayed the move in light of the COVID-19 pandemic's impact on gas markets. The plant was expected to come on stream in 2024-2025 and produce around 5mn metric tons/year.
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"One of the announcements we've made recently was to move away from Obsk LNG to Obsk Gas Chemistry, which will be ... producing clean fuel like ammonia, hydrogen and methanol," Gyetvay said at an online conference, organised by Renaissance Capital, according to Reuters.
Obsk LNG was due to showcase Novatek's proprietary Arctic Cascade liquefaction technology, which has also been put to use at Novatek's 0.9mn mt/yr fourth Yamal LNG train, currently undergoing commissioning. Amid delays at the Yamal LNG train, however, Russia's Kommersant newspaper reported in March that Novatek was considering using technology developed by Germany's Linde instead.
Russian oil and gas companies are under pressure from investors to improve their environmental credentials. Novatek has responded with proposed hydrogen and carbon capture and storage initiatives.