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Novatek’s ambitions on blue ammonia

CIS GAS MONETISATION

Novatek’s ambitions on blue ammonia

Novatek’s pilot project will see natural gas from the Yamal Peninsula used for the production of blue ammonia and hydrogen - Upstream Online

Lev Fedosyev, Novatek’s First deputy executive board chairman announced that the company is currently reviewing design studies for the proposed Obsky Gas Chemistry Complex (Obsky GCC) and conducting economic and logistics analyses.

During the first stage, the company will produce more than 2 million tonnes of ammonia and about 120,000 tonnes of hydrogen per year. Over 90% of CO2 produced (more than 4 million tonnes per year) will be captured and stored in geological formations. Geological surveys to study additional potential reservoirs are currently being carried out.

Fedosyev highlighted steps taken by Russian authorities to create a regulatory framework for carbon capture and storage projects, including the pumping of CO2 into underground reservoirs.

Novatek has signed an agreement with Paris-based Kayrros for a joint pilot to improve tracking, detecting, monitoring and measuring of methane emissions at its gas fields in West Siberia.

According to the company, the Arctic LNG 2 project has reached 52% completion by the end of September against 45% at the end of June. The company invested 12.3 billion rubles ($174 million) of capital investments into this development between July and September this year.

The company plans to build up reserves for a third LNG project, Arctic LNG 1, and reverse decline at gas fields that supply domestic customers by investing round 20.8 billion rubles in exploration and drilling infrastructure at 14 gas fields in West Siberia in the third quarter.

Third-quarter revenues came in at 277 billion rubles against 164 billion rubles a year earlier, and net income rose to 113 billion rubles from 13 billion rubles in the same period of 2020.

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