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Documents signed for NGV market development and natural gas processing & liquefaction

A number of documents were signed today at St. Petersburg International Gas Forum 2021 to advance activities in the areas of natural gas processing & liquefaction, as well as NGV market development.

Gazprom and Caspian Innovation Company (CIC) signed a long-term contract for supplies of ethane fraction and liquid hydrocarbons (LPG).

The document stipulates the basic terms of supply of valuable components that will be extracted from natural gas at the Astrakhan Gas Processing Plant (GPP) for the future Gas Chemical Complex (GCC) of CIC in the Astrakhan Region. At least 400,000 tons of ethane fraction and LPG will be supplied on a yearly basis. The contract will be effective for 20 years.

The document is legally binding, and it allows the companies to commence the practical implementation of the projects. Gazprom plans to renovate the GPP's ethane fraction recovery units, while CIC intends to build a cutting-edge GCC.

Gazprom and the Government of the Leningrad Region signed a Roadmap to implement a pilot project for NGV market development.

The document serves as an updated version of the Roadmap signed at the St. Petersburg International Gas Forum in 2019, and aims to further enhance the effectiveness of joint activities for NGV market development in the region.

The main lines of activity include expanding the gas filling infrastructure to 23 units by 2024, increasing the number of vehicles fueled by natural gas, and creating new centers for NGV conversion and maintenance.

Gazprom Helium Service, Gazprom Gazomotornoye Toplivo, the Administration of the Volgograd Region, and BYKOVOGAZ signed a Coordination Agreement to develop comprehensive infrastructure for the production, storage, transportation and consumption of liquefied natural gas (LNG) in the Volgograd Region.

In line with the document, Gazprom Helium Service intends to build a small-scale LNG production complex (with an hourly capacity of 1.5 tons) in the Bykovsky District. BYKOVOGAZ will ensure that gas is fed to the complex. In its turn, Gazprom Gazomotornoye Toplivo undertakes to expand the infrastructure for refueling vehicles with LNG taking into account the plans of a major regional transportation organization for creating an LNG-fueled bus fleet in Volgograd. The regional administration will provide assistance to the project participants.

Gazprom Helium Service and Space Rocket Center Progress signed a Memorandum of Understanding to create an LNG production complex in the Amur Region. It is planned to, inter alia, use LNG for the needs of the Vostochny Cosmodrome.

Gazprom Helium Service and Project Initiatives Development Agency (part of the REGION Group of Companies) signed an Agreement to expand the capacities of the transport and logistical infrastructure of the Amur Region during the transportation of liquefied petroleum gases produced by the Amur GPP.

Gazprom Helium Service and the FESCO Transportation Group signed an Agreement of Intent. The parties will consider the option of using the capacities of the Commercial Port of Vladivostok with the purpose of shipping thermally-insulated containers with commercial helium arriving from the Amur GPP. The containers will be prepared for marine transportation at the world's largest helium hub, which was put in operation by Gazprom near Vladivostok in September 2021.

Background

In November 2020, Gazprom and Caspian Innovation Company signed the agreement to cooperate during the project for setting up a Gas Chemical Complex in the Astrakhan Region.

Gazprom Gazomotornoye Toplivo is a special-purpose company that was established by Gazprom to ensure the continuous development of the NGV market.

Gazprom Helium Service is the operator of the Logistics Center for the servicing of helium containers located in the Nadezhdinskaya PDA (Primorye Territory).

BYKOVOGAZ is an independent company that produces hydrocarbon feedstock within the Yuzhno-Kislovskoye gas and condensate field in the Bykovsky District of the Volgograd Region.

 

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