Novatek, India's Deepak Fertilisers sign MoU on LNG, ammonia
Russia’s Novatek and India’s Deepak Fertilisers and Petrochemicals Corp. have signed a non-binding memorandum of understanding regarding supply of LNG and low-carbon ammonia, the Russian company said on February 6.
The MoU, signed in the Indian city of Bengaluru, envisages spot and long-term LNG deliveries to Deepak Fertilisers, including from the Arctic LNG 2 project. Novatek in December said that the Arctic LNG 2 project is still on track to produce its first gas in December 2023 as planned, despite headwinds from Western sanctions and other fallout from Moscow's invasion of Ukraine.
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Arctic LNG-2 is set to comprise three trains with a combined liquefaction capacity of close to 20mn metric tons/year. But there have been concerns that the project could run into difficulty given Western sanctions, and the withdrawal of various international partners, financiers, contractors and suppliers.
Novatek and Deepak Fertilisers 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 in Yamal. The pre-FEED study for the gas chemical complex was completed in 2022.
Russia is looking to boost oil and gas supplies to India and China after Europe slashed its purchases following its invasion of Ukraine early last year.