TotalEnergies and Novatek have signed a memorandum of understanding (MoU) on June 3 to jointly work on sustainable reductions of the CO₂ emission resulting from the production of 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.
This partnership will leverage the significant low-cost resources of the Yamal and Gydan peninsulas and their large potential for geological storage.
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.
"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,” Patrick Pouyanné, chairman and CEO of TotalEnergies, said. “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.
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