Image credit: TotalEnergies

TotalEnergies and Novatek have signed a Memorandum of Understanding (MoU) to collaborate on sustainable reductions of the CO₂ emission resulting from the production of liquefied natural gas (LNG).

In order to achieve their decarbonisation goals, the French oil giant and Russian natural gas producer intend to use renewable power, develop large-scale carbon capture and storage solutions (CCS) and explore new opportunities for developing decarbonised hydrogen and ammonia.

According to Novatek, technical solutions will be considered to improve the efficiency of power generation for LNG production, including using waste heat utilisation technologies. The MoU also envisages developing and deploying technologies to convert gas turbine equipment to hydrogen fuel, as well as working on solutions for the construction of wind power generation facilities and other renewable energy sources to reduce the carbon footprint of LNG projects.

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This partnership will leverage the significant low-cost resources of the Yamal and Gydan peninsulas (located in Siberia, Russia) and their large potential for geological storage. According to GeoExPro, the region south of the Kara Sea is home to the Yamal crater and has attracted attention partly because of its proximity to the Bovanenkovo-Ukhta high-pressure gas pipeline. The diameter of the crater and the parapets are 26 and 37m respectively, its depth is about 50m and the crater is one of a number discovered on the Yamal and Gydan Peninsulas.

In 2017, Novatek entered the global LNG market by launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which, according to Novatek, is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production.

“…We are implementing technical solutions to reduce our carbon footprint on our Yamal LNG and Arctic LNG 2 projects and increase the competitiveness of our LNG products,” said Leonid Mikhelson, Novatek’s chairman of the Management Board.

Each partner will bring its technologies and know-how to explore and develop projects that will help reduce the carbon footprint of the LNG value chain, using:

• carbon capture and storage (CCS),
• energy efficiency,
• renewable sources of power,
• marketing of carbon-neutral LNG,
• and clean hydrogen & ammonia.

“We are very pleased to begin a new chapter in our cooperation with our long-standing strategic partner Novatek. Our two companies are joining forces to deliver sustainable solutions to reduce emissions from our LNG projects and to provide low carbon LNG to our customers,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “In line with our transformation strategy and our ambition to be a major player in the energy transition, we want to be a leader in low-carbon LNG.”

TotalEnergies is a 19.4% shareholder in Novatek and holds a 20% stake in Yamal LNG, a project that started up in December 2017 and produced more than 18.8 million tons of LNG in 2020. The company also holds a 10% stake in Arctic LNG 2, a project currently under construction and on track to deliver its first LNG cargo in 2023.

Upcoming webinar: Green is the new black | Carbon capture, utilisation & storage
1 July 2021
We explore how the oil and gas sector is employing the latest carbon capture technologies to meet net zero goals.