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Russia, India sign MOU on supply of LNG, ammonia, low-carbon hydrogen

  • By Al Mayadeen English
  • Source: Agencies
  • 6 Feb 2023 22:47
  • 4 Shares
2 Min Read

Russia's Novatek says the cooperation "will facilitate the region’s economic development."

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  • Russia, India sign MOU on LNG supply and strategic cooperation
    Russian Arc7 LNG Carrier headed for Russia’s Yamal LNG terminal

Russian energy giant Novatek signed a memorandum of agreement (MOU) with India's Deepak Fertilisers and Petrochemicals Corp. to cooperate on supplying the latter with LNG and low-carbon ammonia.

"Today, as part of the Indian Energy Week, Novatek PJSC and Deepak Fertilisers and Petrochemicals Corporation Ltd. signed a non-binding memorandum of understanding in the field of LNG and low-carbon ammonia supplies," Novatek said in a statement. 

Read more: India replaces US dollars with dirhams in Russian oil trade: Reuters

According to the deal, Novatek would supply LNG to Deepak Fertilisers on a spot and long-term basis, including gas from the Arctic LNG 2 project.

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Both parties also agreed to cooperate on implementing "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," explained the Novatek statement, adding that "the pre-FEED study for the gas chemical complex was completed in 2022."

Read more: New corridor for India-Russia trade via Iran nearly complete

“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," said Novatek's CEO Leonid Mikhelson.

"Mutually beneficial energy cooperation between our countries is actively developing, and the signed MoU will contribute to its further strengthening," he added.

Read more: Russia-India trade to break record in 2022

  • LNG
  • Deepak Fertilisers
  • Russia
  • Novatek
  • India
  • Arctic LNG 2

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