TotalEnergies partners with Novatek on LNG decarb, hydrogen and renewables
France-headed TotalEnergies SE (formerly Total SA) and PAO Novatek, the largest independent natural gas producer in Russia have signed a Memorandum of Understanding (MoU) to jointly work on sustainable reduction of carbon dioxide (CO2) emissions resulting from the production of liquefied natural gas (LNG) including with the use of renewable power, to develop large-scale carbon capture and storage solutions (CCS) and to explore new opportunities for developing decarbonized hydrogen and ammonia.
According to a statement, this partnership will leverage the significant low-cost resources of the Yamal and Gydan peninsulas and their large potential for geological storage.
TotalEnergies (previously known as Total) is the world’s second-largest publicly traded LNG player, with a global portfolio of nearly 50 million tonnes per annum by 2025 and a global market share of around 10 percent.
TotalEnergies is a 19.4 percent shareholder in Novatek and holds a 20 percent stake in Yamal LNG, a project that started up in December 2017 and produced more than 18.8 million tonnes of LNG in 2020. The company also holds a 10 percent stake in Arctic LNG 2, a project currently under construction and on track to deliver its first LNG cargo in 2023.
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. 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, said Patrick Pouyanné, Chairman and CEO of TotalEnergies, on the occasion of his visit to the Saint Petersburg International Economic Forum in Russia.
Each partner will bring its best-in-class technologies and combine its 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 and ammonia