Gazprom Neft and Sibur have signed anagreement for the construction ofanew gas processing plant capable ofprocessing 900 million cubic meters ofassociated gas per year atthe site ofthe Yuzhno-Priobskaya Compressor Station inKhanty-Mansi Autonomous Okrug.

The recovery factor oftarget components atthe gas processing plant will beatleast 95percent, which isinline with levels achieved internationally.

OOO Yuzhno-Priobsky Gas Processing Plant, ajoint venture between Gazprom Neft and Sibur established onaparity basis, isthe owner ofthe Yuzhno-Priobskaya Compressor Station and will carry out the project. According toamemorandum, Gazprom Neft will supply associated gas tothe Yuzhno-Priobskaya Compressor Station onalong-term basis, while Sibur will acquire half ofthe volume supplied. The companies plan toprocess associated gas and obtain afinished product inproportion totheir respective shares inthe joint venture. Sibur will sell its share ofthe dry stripped gas toGazprom Neft and purchase from Gazprom Neft that company’s share ofthe natural gas liquids produced. All ofthe contracts will belong-term inscope and will rely onagreed price formulas.

The plan istoexport the dry stripped gas via the Khanty-Mansi City Gas Supply trunk pipeline. Natural gas liquids are tobeexported via aproducts pipeline toSibur’s industrial site inTobolsk. The project for construction ofthe gas processing plant involves creating infrastructure for the loading, storage, and unloading ofnatural gas liquids, aswell asrenovating the pipeline for transport ofthe dry stripped gas tothe gas trunk pipeline.

The decision was made in2010 tobuild acompressor station and anassociated gas collection system atYuzhno-Priobskoye field that would make itpossible todeliver gas tothe Yuzhno-Balyksky Gas Processing Complex. Gazprom Neft has also built a90-kilometer-long associated gas collection system and five vacuum compressor stations for the purpose ofshipping gas from the field tothe compressor station. The compressor station, which has adesign capacity of500 million cubic meters per year and was built within the framework ofthe joint venture, accepted its first associated gas for pre-commissioning inthe summer of2013. However, increased estimates ofassociated gas tobeproduced atGazprom Neft fields made itpossible tomake the decision tocreate the new Yuzhno-Priobsky Gas Processing Plant atthe site ofthe compressor station.

“Raising the efficiency ofassociated gas utilization isone ofthe key tasks which Gazprom Neft approaches with special attention. Weare predicting further growth inthe volumes ofassociated gas produced atour fields inKhanty-Mansi Autonomous Okrug, and are beginning anew project aimed atincreasing the volumes ofassociated gas utilized. Itbecame the optimal solution tobuild agas processing plant, since that will allowus and our partners toobtain amaximum economic effect from the processing ofraw materials and use our companies’ work experience onindustry markets,” commented Gazprom Neft First Deputy CEO Vadim Yakovlev.

“Inpartnership with oil-producing companies, weare continuing togrow our feedstock and develop gas processing facilities and infrastructure inWestern Siberia. Byuniting Sibur’s competence inthe field ofconstructing and operating gas processing plants with Gazprom Neft’s raw materials potential, weare getting the opportunity toform aproject that will beeffective for each ofits participants,” stated Sibur Executive Director Mikhail Karisalov.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.