FSUOGM: Novatek considers Yamal wind power

Russia’s Novatek is reportedly considering the construction of a wind farm on the Yamal Peninsula in order to limit Scope 2 emissions at its Yamal LNG plant.

Like other Russian oil and gas companies, Novatek is under heightened pressure to reduce the emissions from its products, in order to boost its environmental, social and governance (ESG) rating and make its gas more attractive to buyers. The proposed plant at the port of Sabetta would have a capacity of up to 200 MW, Moscow-based Kommersant reported on June 28 citing sources, and analysts estimate it would cost RUB12-14bn ($166-194mn) to build. Danish developer Vestas is considered the most likely company to win the construction contract, the newspaper said.

By powering Yamal LNG with wind energy, Novatek will reduce the facility’s CO2 emissions by 240,000-260,000 tonnes per year (tpy), according to Kommersant. In the longer term, it could be used to produce green hydrogen, which can also be used as a low-carbon energy source at Yamal LNG and other Novatek projects in the area.

Analysts believe that while the reduction in emissions is fairly insignificant for the company, it will benefit from the fact its gas will be perceived as cleaner.

In other news, the Uzbek government has shifted its priority to extracting as much profit from the oil and gas industry as possible, and away from increasing production to ensure energy independence, Uzbek Deputy Energy Minister Bekhzot Narmatov told a webinar hosted by international oilfield services firm ERIELL on June 23.

“The Uzbek government is no longer focused on achieving long-term energy independence from the import of fuels such as natural gas and crude oil,” Narmatov said, noting that gas imports bolster the Uzbek economy. “If Gazprom is offering us a good price, we are buying from Gazprom.”

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