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Salym Petroleum launched LPG plant to ensure utilization of associated petroleum gas

On May 18, 2012 Salym Petroleum Development N.V. (SPD), OOO “Monolit” and OAO NK RussNeft launched the liquefied petroleum gas (LPG) plant located in Salym group of oil fields in Western Siberia. When fully operational this facility, constructed and operated by OOO “Monolit”, should now enable SPD and RussNeft to ensure utilization of their associated petroleum gas (APG). The official opening ceremony with the participation of the Governor of Khanty-Mansi Autonomous Okrug Natalya Komarova, Ambassador of the Netherlands Ron Keller, Ambassador of the United Kingdom Tim Barrow and other top-level guests, has taken place today in Khanty-Mansiysk.

To realize this project SPD, Monolit and RussNeft signed a tripartite memorandum of understanding on APG utilization in 2008. Under this agreement the parties agreed to create necessary infrastructure to ensure integrated processing of associated petroleum gas produced at Salym group of oil fields developed by SPD and Shapsha group of oil fields developed by RussNeft.

The total investment into this APG utilization project exceeds 10 bln rubles. Moreover, international financial companies such as EBRD, DEG and UniCreditBank took part in financing LPG plant construction.

Since the very start of the Salym project SPD paid a key attention to gas utilization issue and developed an extensive gas utilization program. This project covers two projects:

  • construction and start-up of a gas turbine power plant (PGP) which since 2008 has used around 1/3 of the APG to generate electric power;
  • construction of liquefied petroleum gas (LPG) plant within the fields to bring utilization gas up to 95%.

Notes for editors

Salym Petroleum Development N.V. Open a new window is a 50/50 Joint Venture of Shell Salym Development B.V. (part of Shell group) and Gazprom Neft. Since 2003, SPD has been developing the Salym group of oilfields (West Salym, Upper Salym and Vadelyp), which are located in the Khanty-Mansi Autonomous Okrug in Western Siberia. Total recoverable resources are 140 mln. tones. The Salym Project is one of the largest on-shore investment projects with foreign capital in the Russian energy sector. In 2011, SPD produced over 8.4 mln.tons of oil.