PAO NOVATEK has created a new subsidiary to construct small-scale LNG plants, facilitate LNG wholesale markets and develop a retail network for LNG as a motor fuel.
Called NOVATEK – LNG Fuel, the subsidiary will also provide LNG as part of the autonomous gasification program in the Russian domestic market.
On the launch, Leonid Mikhelson, NOVATEK’s Chairman of the Management Board, said, “We are creating a dedicated subsidiary to develop the domestic LNG fuel market as part of our commercial marketing strategy.”
“The use of LNG as a motor fuel can reduce carbon emissions compared to diesel or other petrol products, as well as significantly reduce harmful particles emitted into the atmosphere, which contributes to the decarbonisation of the transport industry and the protection of the environment.”
NOVATEK has now been actively developing the production and sales of LNG as a motor fuel. In 2020, the company launched a small-scale LNG plant in Magnitogorsk, Chelyabinsk Region with a capacity of 40 thousand tonnes per annum.
At present, NOVATEK owns 12 LNG fuelling stations in Russia and plans to further expand the production and distribution networks for clean- burning fuels for transport.