Page 8 - FSUOGM Week 10 2021

FSUOGM COMMENTARY FSUOGM

Novatek CFO Mark
Gyetvay.

Novatek eyes CCS

Novatek wants to decarbonise its already attractive low-cost natural gas

RUSSIA RUSSIAN LNG producer Novatek has revealed of LNG. It will be joined by the company’s 20mn
plans to take a final investment decision (FID) tpy Arctic LNG-2 starting in 2023, and several
WHAT: next year on what would be Russia’s first carbon other projects over the course of the next decade.
Novatek aims to take an capture and storage (CCS) project. Novatek has recently undertaken a subsur-
FID on what would be LNG exporters across the world are under face geological study at the South Tambey field
Russia's first carbon, pressure from investors to reduce their emis- on the Yamal Peninsula that supplies Yamal
capture and storage sions, and Novatek is no exception. The com- LNG’s gas.
project next year. pany, which currently boasts the highest “We know now what reservoirs are available
environmental, social and governance (ESG) for carbon storage and where we can place CO2
WHY: among Russia’s oil and gas majors, is looking injection wells,” Gyetvay explained. “We have
The facility would capture to produce hydrogen at its Yamal LNG in the also done the same thing throughout our whole
emissions from Yamal country’s far north. Hydrogen, touted as a key portfolio to identify exactly where we can start
LNG and other projects solution for decarbonising heavy industry, can injecting carbon.”
and enable Novatek to be produced from natural gas and made carbon There is currently no legislation in place to
produce blue hydrogen. neutral if the CO2 emissions from the process govern CCS development, but this is something
are captured and safely stored. that should be addressed this year, the CFO
WHAT NEXT: While it is testing the waters of new energy continued.
Russia needs to develop technologies, Novatek says it still confident “With this in mind, Yamal LNG shareholders
legislation to govern CCS about the long-term growth potential for natural will be able to take a final investment decision
projects. gas demand. This growth is expected to come on [FID] on the CCS project by early 2022,’ he said.
the back of rising economic output and the phas- Creating a certification process for complying
ing out of coal-fired power generation in Asia. with reduced and zero carbon emissions at LNG
“The world is changing and it needs more plants is another issue that needs to be overcome,
gas rather than less gas,” Novatek CFO Mark and this will be key for Novatek to prove to its
Gyetvay said in a speech at the CERAWeek buyers that it is compliant with emissions stand-
conference. ards, Gyetvay said.
Novatek’s flagship project is Yamal LNG, Yamal LNG is already equipped with a
capable of exporting up to 17mn tonnes per year vapour recovery system that captures boil-off

P8 www. NEWSBASE .com Week 10 10•March•2021