Gazprom Neft, Mitsui team up on low-carbon projects

Russia's Gazprom Neft and Japan's Mitsui have signed a memorandum of understanding to jointly develop decarbonisation projects in Russia and other countries where the pair operate, the companies said on February 15.

Russian producers are facing increasing pressure to demonstrate their commitment to tackling emissions in front of investors and European regulators. Gazprom Neft, the oil arm of state-owned gas supplier Gazprom, said it would work with Mitsui on producing blue hydrogen and using alternative fuels for sea and river transport.

While traditionally focused on oil, Gazprom Neft is shifting its attention to natural gas development. As part of this shift, it launched Russia's first LNG bunkering vessel last year, which is due to refuel vessels in the Baltic Sea.

Gazprom Neft also has early-stage plans to develop blue hydrogen and carbon capture and storage with Russian steelmaker Severstal.