Novatek reconfigures Obsky LNG project to produce hydrogen, ammonia

Russian non-state natural gas producer Novatek has decided to reconfigure its Obsky LNG project to produce ammonia, hydrogen and methanol, the company's Chief Financial Officer Mark Gyetvay said.

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.

Reporting by Vladimir Soldatkin and Oksana Kobzeva Editing by Bernadette Baum

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