India’s Deepak Fertilisers and Petrochemicals Corp. Ltd. and Russia’s largest independent natural gas producer and LNG producer PAO Novatek have signed a non-binding Memorandum of Understanding (MOU) on the supply of low-carbon ammonia and liquefied natural gas (LNG), the Russian company said Feb. 6.
The Russian company said the MOU was inked on Feb. 6 at India Energy Week, held in Bengaluru in Karnataka state on India’s West Coast.
Novatek reported 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 the 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 on the Yamal Peninsula in northwest Siberia, Russia.
Novatek said it completed the pre-FEED study for the Yamal chemical complex last year, after signing a MOU with Russia’s Sberbank and Gazprombank on financing the construction of the green chemical plant in June 2021 (GM June 11, 2021)
The Russian gas and LNG producer in late 2021 and Germany’s Uniper SE, Düsseldorf, an energy supply company, signed a term sheet on long-term supply of up to 1.2 million mt/y of low-carbon ammonia to the German and Northwest Europe markets (GM Jan. 7, 2022).
The product will be produced at Novatek’s planned Obskiy Gas Chemical Complex project, which will include carbon capture and storage facilities, and delivered to Uniper’s planned ammonia import terminal in Wilhelmshaven, Germany (GM April 16, 2021). The product price will be indexed to relevant European and global benchmarks.