Page 12 - FSUOGM Week 23 2021

FSUOGM ENERGY TRANSITION FSUOGM

Gazprom Neft, Novatek to help

decarbonise Russian steel

RUSSIA RUSSIA’S Gazprom Neft and Novatek are look- instead.
ing to help the country’s steelmakers decarbon- “We routinely recycle CO2 through rein-
Novatek is already ise their operations with the use of hydrogen. jection into oil and gas reservoirs as part of our
a supplier of gas to Steelmaking is considered one of the indus- operations. We have accumulated significant
Severstal. tries that is hardest to abate carbon emissions experience in these kinds of projects and are
from, given its high energy intensity. But ready to share these skills and competencies
hydrogen has been proposed as one of the best with our partners, and with the market at large,”
solutions. Gazprom Neft’s deputy chairman Vadim Yak-
Gazprom Neft signed a deal last week to col- ovlev said. “Expert advice is that CO2 reinjec-
laborate in producing, transporting, storing and tion is one of those tools without which global
using hydrogen with steelmakers Severstal and emissions reductions are just not going to be
Evraz. The group will also look at other ways to achieved. We want to share our skills with metal-
reduce CO2 emissions. lurgy companies to develop production technol-
Novatek, meanwhile, signed a memoran- ogies that minimise man-made environmental
dum of understanding (MoU) with Severstal impacts.”
on decarbonising its operations using both Novatek is already a supplier of gas to
hydrogen and carbon capture and storage (CCS) Severstal.
technology. “Steel producers are one of the largest indus-
The focus of both partnerships will be blue trial consumers of natural gas, and reducing
hydrogen, which is classified as such when it greenhouse gas [GHG] emissions is a new pro-
is produced from natural gas, and when the spective area of our mutually beneficial co-op-
CO2 emissions from the process are captured eration,” Novatek CEO Leonid Mikhelson said.
and stored. Gazprom Neft said it would share “The use of carbon capture and storage tech-
its experience in CO2 recycling, while Sev- nologies, as well as a hydrogen fuel blend, will
erstal and Evraz will look at ways of switching reduce our joint carbon footprint and increase
the hydrocarbon-fuelled production facili- the competitiveness of products manufactured
ties to run on a mix of hydrogen and methane by the Russian steel industry.”™

PROJECTS & COMPANIES

Rosneft, Inter RAO eye

gas supply for vehicles

RUSSIA RUSSIAN oil giant Rosneft has teamed up with gas for vehicle fuel grew to 1.1bn cubic metres
state power group Inter RAO to carve out a slice in 2020, up from 680mn cubic metres the pre-
Russia has offered of the growing market for LNG and compressed vious year, despite the pandemic, which caused
consumers subsidies for natural gas (CNG) as vehicle fuels in the country. demand for conventional fuels to slump. The
converting their vehicles Rosneft and Inter RAO will undertake feasi- Moscow-based consultancy expects demand to
to run on gas. bility studies for producing LNG and supplying reach 1.7 bcm in 2022 and 2.7 bcm in 2024.
it along with CNG as motor fuels at Rosneft’s In order to encourage the market’s develop-
retail filling stations. Inter RAO is designing liq- ment, Russia has offered consumers subsidies
uefaction plants, and the pair are also looking at for converting their vehicles to run on gas. The
retrofitting Rosneft’s stations to serve the fuels. government has also provided support to man-
Gazprom dominates the market for natural ufacturers of equipment for natural gas vehicles
gas as a vehicle fuel in Russia, owning the major- and to companies establishing CNG and LNG
ity of the 530 or so CNG stations in the country. filling stations.
But Rosneft wants to claim its own share of the In a new turn, it was reported in late April that
market. In the past it has talked up prospects for Gazprom wants to use a franchise system to spur
developing a business in the Moscow region. development of CNG and LNG filling stations
Vygon Consulting estimates that sales of under its brand. ™

P12 www. NEWSBASE .com Week 23 09•June•2021