08 Sep 2021

Russia's Novatek Steps up Cooperation with Japan

08 Sep 2021  by   

Russian natural gas giant Novatek and the Ministry of Economy, Trade and Industry of Japan have signed a memorandum of cooperation on ammonia, hydrogen and carbon capture, utilization and storage.

The agreement was signed on September 2 during the Eastern Economic Forum in Vladivostok, in the presence of the Minister of Energy of the Russian Federation Nikolai Shulginov and the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama. The two parties intend to mutually support projects in producing and marketing of ammonia and hydrogen, as well as implementing technologies for carbon capture and storage in Russia and Japan.

In particular, the memorandum provides for the exchange of information and research in these areas, as well as implementing pilot projects and providing state support for developing policies in the field of decarbonization, standards and requirements for low-carbon products.

“One of the most important elements of our strategy is to reduce our carbon footprint, which allows us to increase the competitiveness and market attractiveness of the company's products in the context of energy transition,” says Leonid Mikhelson, Novatek's chairman of the management board. “The memorandum expands inter-governmental support for our climate projects, which is of great importance for the successful implementation of Novatek’s strategic plans to further increase LNG production while correspondingly reducing our carbon footprint. The memorandum also contributes to strengthening the economic ties between Russia and Japan.”

Also at the Eastern Economic Forum, Novatek and the Japan Bank for International Cooperation (JBIC) signed a strategic cooperation agreement on low-carbon projects.

The parties intend to cooperate on projects to produce hydrogen and ammonia, carbon capture, utilization, and storage technologies, as well as renewable energy projects in Russia, including ammonia and hydrogen production projects on the Yamal Peninsula.

The strategic cooperation agreement provides opportunities for Novatek to work with Japanese companies and financial institutions on developing low-carbon solutions, attracting investments and expanding the range of suppliers of state-of-the-art equipment and technologies. It also facilitates opportunities for Novatek to market its clean fuel products to a wider range of consumers from Japan, to reduce total carbon emissions.

Novatek is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. The company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons.

Its upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which 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.

Novatek shares are listed in Russia on the Moscow Exchange and the London Stock Exchange.

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