Meeting dedicated to associated petroleum gas utilization at Gazprom Group enterprises held
RELEASE
Release
The Gazprom Headquarters hosted a meeting on issues related to associated petroleum gas (APG) utilization at the Company’s enterprises. The meeting was chaired by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee.
Participating at the meeting were heads and experts of the Gazprom core business units and subsidiaries – Gazprom neft, Gazprom dobycha Urengoy, SIBUR Holding, Yamalgazinvest, Gazpromrazvitiye, TyumenNIIgiprogaz and Stimul.
The meeting particularly highlighted that the execution of the President and Government of the Russian Federation directives aimed at increasing APG utilization efficiency demanded a comprehensive approach.
It was pointed out that since 2008 the Gazprom R&D Program had involved the implementation of R&D activities in conformity with the performance specification themed “Development of set of technical solutions for the utilization of associated petroleum gases of Gazprom fields including Gazprom neft fields”.
This research work is aimed at developing a set of technical solutions on APG utilization, providing a first stage increase to at least 95 per cent of APG utilization in the Gazprom Group fields by 2011, and a Comprehensive Program for APG utilization within the Gazprom system up to 2030.
The meeting heard proposals of the Gazprom subsidiaries representatives involved in APG production and processing dealing with the expansion of its utilization.
In particular, to achieve the challenge of APG utilization at the level of at least 95 per cent Gazprom dobycha Urengoy envisages the construction and commissioning of two compressor stations as well as the reconstruction of existing production capacities in 2008.
In Gazprom dobycha Urengoy, APG is utilized through a closed scheme avoiding flaring.
At present, Gazprom neft and SIBUR Holding are carrying out a joint activity aimed at executing the Program for utilization and APG efficiency increase to a 95 per cent level. The Program is projected for 2008–2010.
At Stimul the level of APG utilization exceeds 99 per cent. Nowadays, APG utilization facilities are constructed jointly with additional oil and gas treatment capacities.
The meeting resulted in signing a protocol containing additional measures with a view to increasing APG utilization efficiency at the Gazprom Group enterprises and its processing expansion.
The meeting paid special attention to the fact that Gazprom is giving priority to the injection of APG processed in compliance with industrial requirements to the UGSS.
Background
In 2007 Gazprom developed a set of measures aimed at the successful solution of APG utilization problem. The developed proposals were submitted to the Industry and Energy Ministry, the Natural Resources Ministry, and the Government of the Russian Federation.
Gazprom’s proposals include the development of legal base aimed at the reinforcement of subsurface user responsibility in relation to APG utilization. It concerns the inclusion of APG utilization levels into license agreements, prohibition of hydrocarbon field operations if not supplied with meters registering volumes of extracted APG and natural gas, growth of environmental penalties for above-norm emissions, inclusion of activities on APG utilization into the package of project documentation on fields developing as well as introduction of state level economic motivations assisting efficient utilization of APG. Among them, the abolition of state regulation of APG prices, activities related to flare devices supply with gas meters to record and monitor flared APG, establishing profit tax benefits for APG derivatives sellers as well as benefits for the production and import of gas fractioning equipment; abolition of an export duty imposed on propane-butane fractions derived from APG refining.