The Gazprom Headquarters has hosted a meeting on associated petroleum gas (APG) conservation and utilization.

Attending the meeting were heads and specialists of the core business units of Gazprom, VNIIGAZ, TyumenNIIgiprogaz, Urengoygazprom, Sibur Holding, Gazprom Neft, Gazpromrazvitiye, Yamalgazinvest.

The participants discussed the ongoing business activity and plans with regard to APG utilization at Gazprom Group enterprises. Additionally, the participants examined extra measures necessary to increase APG utilization efficiency and expand its processing volumes.

The heads of Sibur Holding, Gazprom Neft, Gazpromrazvitiye, VNIIGAZ informed the participants about the work done in this direction.

Sibur Holding actively increases the APG utilization efficiency and processing scope. In 2006 Sibur Holding processed nearly 14 bcm of APG. Sibur Holding development strategy stipulates boosting the annual APG processing volume to 22 bcm by 2011.

Gazprom Neft specialists are currently engaged in developing a Concept to increase the APG utilization and conservation rate, which is planned to reach no less than 80 and 95 per cent by 2009 and 2012, respectively.

Urengoygazprom plans to construct two compressor stations with a view to increase APG utilization efficiency to a 95-98 per cent level. The compressor stations are scheduled to begin operation at year end 2008. This will enable to treat APG and feed it into the Yamburg-Urengoy field gathering line as well as to meet the needs of upstream units in gas lift.

The meeting resulted in the decision to develop a Concept and Comprehensive Program for higher APG utilization level within Gazprom Group. A working group will be set up with the aim of preparing the Program. The Program is targeted at reaching the 85-95 per cent APG utilization level by 2010-2012.

Reference:

In 2006 Gazprom produced and utilized more than 6.3 bcm and 56 per cent of APG respectively including:

• Orenburggazprom - 0.5 bcm and 95 per cent;
• Severgazprom – 30 mcm and 95 per cent;
• Urengoygazprom – 1,570 bcm and 75 per cent;
• Gazprom Neft – 4,532 bcm and 45 per cent.

Gazprom annually transports up to 16 bcm of APG including gas of independent oil companies.