Posted by: russiaoilandgas | July 17, 2007

Russia Flares the Equivalent of Gas Reserves Held in Large Field Every Year

Gas Oil Russia Technology Associated Petroleum Gas FlareEvery year Russia wastes approximately 362 bln rubles ($14.22 bln) by flaring associated petroleum gas (APG), according to data provided by Yuri Trutnev, the Russian Minister of Natural Resources. The volume of APG annually flared – up to 95% by 2011 – is equal to gas reserves held in the average large gas field, said Trutnev at a conference dedicated to the issue of APG utilization held in Khanty-Mansiysk in June.

The low price paid by processing plants for APG, combined with expensive cost of adaptating their own facilities for APG fractionation and lack of infrastructure, reduce to zero all efforts by producers of the Ministry of Industry and Energy (MIE) and the Ministry of Natural Resources (MNR) to improve the situation. As a result, only about 30 percent of extracted gas reaches processing facilities. At the same time, the range of potential applications for APG is far wider than that of natural gas due to its more complex chemical composition.

TNK-BP intends to process APG and Gazprom will expand its processing capacity to the similar level by 2012. The conference in Khanty-Mansiysk should result in elaboration of a system of increasing environmental penalties, which are expected, according to the minister, to “motivate other companies to accelerate their work in this direction”.

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Responses

  1. […] and Gas Eurasia reported recently that Russia wastes $14.22 billion annually through the flaring of associated petroleum gas – the equivalent of the total reserves left in a large gas field.  It seems the Kremlin is now […]


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