Moscow - 6 February 2023
Today, at the India Energy Week, PAO NOVATEK ("NOVATEK" and/or the "Company") and Deepak Fertilisers and Petrochemicals Corporation Ltd. ("Deepak Fertilisers") signed a non-binding Memorandum of Understanding in the supply of LNG and low-carbon ammonia ("MoU").
The MoU envisages spot and long-term LNG deliveries to Deepak Fertilisers, including from the Arctic LNG 2 project. The Parties also intend to cooperate in long-term supply of low-carbon hydrogen and ammonia produced with the use of carbon capture and underground storage, cracking, and renewable energy sources at NOVATEK's future gas chemical site in Yamal. The pre-FEED study for the gas chemical complex was completed in 2022.
"Mutually beneficial energy cooperation between our countries is actively developing, and the signed MoU will contribute to its further strengthening," noted Leonid Mikhelson, NOVATEK's Chairman of the Management Board. "The high-quality low-cost resource base as well as advanced process and logistical solutions will allow NOVATEK to supply competitive LNG with minimal carbon footprint to India's energy market, one of the fastest-growing markets globally. Cooperation in the area of low-carbon hydrogen and ammonia, which we intend to produce along with LNG within an integrated cluster, will facilitate the region's economic development as well as addressing the relevant environmental and climate issues".
PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company's subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 80% of Russia's natural gas production and approximately 15% of the world's gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.
PAO NOVATEK, press release