Gazprom Neft Completes Joint Project with SIBUR to Boost APG Utilization Rate in Noyabrsk Region

Press-release

Gazprom Neft is nearing completion of Phase 1 of the project to improve utilization rate of associated petroleum gas (APG) at the Vyngapurovskaya group of fields in the Noyabrsk Region executed jointly with petrochemical holding SIBUR open a new window.

Under the project, GPN and SIBUR have joined their efforts to simultaneously boost their APG transportation and utilization capabilities, which has allowed them to ship more gas for processing. In particular, Gazprom Neft has laid new gas pipelines and partially modernized the existing gathering system at the Vyngapurovskaya group of fields. A total of 111 km of pipelines has been built or renewed. By the end of 2012 the company is planning to complete 4 vacuum compressor stations (VCS) required to transport low pressure gas. The CAPEX to build VSC and pipelines are expected to exceed 3 billion RUR.

SIBUR has upgraded the existing compressor station’s capacity and built a new plant on its premises, the Vyngapurovsky gas processing plant (GPP), with an annual throughput of 2.4 bcm. The infrastructure upgrades performed by the two companies resulted in an additional 1 bcm of gas per year available for processing.

Phase 1 of the Noyabrsk integrated project comprises five GPN fields: Vyngapurovskoe, Novogodnee, Ety-Purovskoe, Vyngayakhinskoe and Yarainerskoe.

"Gazprom Neft is progressively improving the APG utilization rate, thus alleviating the man-made impact on the environment. The completion of yet another joint project with SIBUR, scheduled for late 2012 – early 2013, with a targeted APG utilization rate at the South Priobskoye field reaching 95%, will allow Gazprom Neft to substantially raise the APG utilization rate, achieving an average of 81% across the company", said Gazprom Neft's Chairman of the Management Board Alexander Dyukov.