Energy

Novatek says it reconfigures Obsky LNG project to produce hydrogen, ammonia

2 minute read

Participants walk past the stand of Novatek company during the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, June 2, 2021. REUTERS/Evgenia Novozhenina/File Photo

MOSCOW, June 23 (Reuters) - Russian non-state natural gas producer Novatek (NVTK.MM) has decided to reconfigure its Obsky LNG project to produce ammonia, hydrogen and methanol, the company's Chief Financial Officer Mark Gyetvay said on Wednesday.

Novatek had initially planned to use a Russian technology, called Arctic Cascade, to produce the sea-borne super-cooled liquefied natural gas at the project in a broader drive for the domestic producers to shield themselves from potential risks of international sanctions.

"One of the announcements we've made recently was to move away from Obsky LNG to Obsky Gas Chemistry, which will be... producing clean fuel like ammonia, hydrogen and methanol," Gyetvay said at an online conference, set up by Renaissance Capital.

Novatek delayed a final investment decision last year for Obsky LNG project, which was expected to come onstream in 2024-2025 and produce almost 5 million tonnes of LNG per year.

Novatek had delayed commissioning a fourth line, also using domestic technologies, at its plant, Yamal LNG. It announced the launch of the line earlier this month, saying it was still needed some fine-tuning.

Register now for FREE unlimited access to Reuters.com
Reporting by Vladimir Soldatkin and Oksana Kobzeva Editing by Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters