As part of today’s Saint-Petersburg International Economic Forum, PAO NOVATEK and European energy company Fortum signed a Memorandum of Understanding on cooperation in renewable power (“MOU”).

The MOU envisages that NOVATEK, including the Cryogas-Vysotsk LNG project in particular, will purchase electricity produced by Fortum’s renewable power facilities in Russia. Using green energy produced by wind farms owned by Fortum and its joint ventures at the Company’s LNG plant in Vysotsk will enable NOVATEK to offer its LNG customers a more sustainable product with a reduced Scope 2 carbon footprint (purchased electricity).

“Our LNG carbon intensity is already among the lowest globally and we are working on further reducing our emissions,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “Purchasing green, renewable energy to power our facility represents one of the most promising mitigation solutions, and our cooperation with Fortum, the largest investor in Russian renewable energy projects, will allow us to contribute to climate change mitigation and increase the competitiveness of our LNG in international markets.”

Background

Cyrogas-Vysotsk is a medium-tonnage LNG project located in the port of Vysotsk, Leningrad Region of Russia on the Baltic Sea. The LNG is mainly exported to the countries of the Baltic Sea Region, including Finland, Sweden, Lithuania and Estonia. The project’s design capacity is 660 thousand tons of LNG per annum, and its infrastructure includes a 42 thousand cubic meters LNG storage tank and an offloading berth designed to handle LNG carriers with a capacity of up to 30 thousand cubic meters. NOVATEK acquired a 51% participation interest in Cryogas-Vysotsk project in July 2017.

KeyFacts Energy: NOVATEK Russia country profile