Novatek aims to generate 10-15% of power for Yamal LNG projects with wind

MOSCOW. Oct 13 (Interfax) - Novatek plans to generate 10-15% of the electricity it needs for its liquefied natural gas (LNG) projects on the Yamal Peninsula with wind energy, and is not scaling back its plans to be producing up to 70 million tonnes of LNG per year on the peninsula by 2030, the Russian gas company's CEO, Leonid Mikhelson told reporters.

He said wind measurements are already being finalized and once this is done the company will decide how much more expensive it will be to build windmills capable of operating at temperatures of minus 60 degrees Celsius. At present, the lowest temperature wind turbines in the world, rated for minus 40 degrees, are in Mongolia.

"We see the amount of generation that is needed overall in this area - at Yamal LNG, Obsky LNG, Arctic LNG 2 and in future Arctic LNG 1 in some form - and we're looking to have wind generation account for 10-15% of total generation," Mikhelson said.

He also said the company is not changing plans to be producing up to 70 million tonnes of LNG by 2030, but the issue of the resource base he mentioned earlier has not been resolved yet. The company is now exploring existing blocks, spending 40 billion-41 billion rubles per year on this in 2021-2022, and "there's nothing interesting" in the unallocated fund of resources, Mikhelson said.

"There are many different instructions they're sending to me again to consider an additional resource base for Gazprom and Novatek for future LNG projects. We have given our proposals, we have not received any responses yet. Perhaps we'll get some sort of responses after all and there will be an additional resource base," Mikhelson said.

He also said he believes that the resource base of Yamal should be used for LNG projects, because they are "more profitable, more right, in one technology and the other technology, there will be cost effectiveness and minimization of all kinds of logistical and political risks compared to a pipeline."