Novatek Registers Liquefaction Patent

Novatek PAO has obtained a Russian patent for a large-scale gas liquefaction process.

Called Arctic Mix, the process uses mixed refrigerants that allow for a larger capacity for liquefied natural gas production (LNG) with improved efficiency, the major Russian natural gas producer said in a press release this week.

“This LNG process has been developed to implement the Company’s large-scale projects on gravity-based structures with a production capacity of 6+ mmtpa [million tons per annum] per LNG train”, the announcement said. “Mixed refrigerants in the process allow it to be used in a wider geography with a better energy efficiency and leaner equipment list.”

“This innovation is an important step towards the localization of liquefaction process trains in alignment with the Company’s strategic objective to develop LNG technologies in Russia”, the independent company said. “Leveraging domestically manufactured equipment for critical parts of the process will enhance the competitiveness of large-scale LNG projects implemented by NOVATEK.”

This was the second patent it announced this year. In April Novatek said it successfully registered proprietary rights for another liquefaction technology called Arctic Cascade Modified (ACM), an upgrade of Arctic Cascade.

“Stemming from operational lessons learned, improvements to the technology enable LNG production with a leaner equipment list and better energy efficiency”, it said April 13, adding the design is meant for locally made equipment.

“The ACM liquefaction process is intended for the Company’s large-scale LNG projects in the Arctic with a production capacity of 3 mmtpa per LNG train.”

Later this week it announced the launch of a hydrocracker it has developed under a deal with Russia’s Energy Ministry.

“With the hydrocracker in operation, NOVATEK will be able to process heavy fractionation residuals (fuel oil) at its gas condensate fractionation facilities in Ust-Luga to reach a 99% yield of marketable light petroleum products”, Novatek said.

“Since the project was developed using domestic manufacturing facilities and infrastructure, the Company will achieve better processing profitability and a more vertically integrated value chain.”

Novatek says it is the biggest independent natural gas producer in Russia. It produced 2.9 trillion cubic feet (82.14 billion cubic meters) of natural gas 2022. Russia’s output last year stood at 20.24 Tcf (573 Bcf), as reported by state media TASS February 1 citing the country’s Federal State Statistics Service.

That represented a 13.4 percent drop from 2021, TASS said. Russia lost its place as the European Union’s top source of natural gas 2022, the year it invaded Ukraine, but still accounted for 15.3 percent of the region’s imports of the fuel that year, according to a bulletin update May 3 by EU statistics agency Eurostat.

Tula LNG Project

In other recent company developments, Novatek said it has entered a deal with the Tula regional government for an LNG plant that can produce 126 kilotons a year.

“This LNG facility, the largest in the Central Federal District of the Russian Federation, will supply LNG as motor fuel through an LNG fueling network and as an off-grid energy solution”, it said Thursday of the agreement signed at the Saint Petersburg International Economic Forum.

“The use of LNG will improve the cost-effectiveness of transport operations, reduce the environmental footprint, enhance the reliability of power supply and contribute to the economic development of Russian regions”, Novatek said.

Bond Issuance

In finance activities, it said May it had completed the order book for local currency bonds offered on the Moscow Exchange.

Demand reached nearly $958.4 million (RUB 80 billion) for the $359.4 million (RUB30 million) on offer, Novatek announced May 23.

The bonds hold a three-year maturity with a par value of $12 (RUB 1,000).

To contact the author, email jov.onsat@rigzone.com