Novatek plans gas chemicals plant on Yamal
Russian gas producer Novatek has signed a memorandum of understanding with state lenders Sberbank and Gazprombank to line up financing for a gas chemicals plant on the Yamal Peninsula.
The plant will be built near the port of Sabetta, which hosts Novatek's Yamal LNG project, and will produce ammonia, hydrogen and other gas chemical products, the gas company said on June 4.
"Ammonia is a promising low-carbon fuel in great demand in the chemical industry, and an efficient transport carrier of hydrogen,” Novatek CEO Leonid Mikhelson said in a statement. "The company is considering various concepts for a gas chemical plant in order to select the most efficient option."
Novatek plans to capture CO2 released when the ammonia is produced and inject it into underground reservoirs for storage, while shipping the ammonia to markets in Europe and the Asia-Pacific region.