New Gas Plants Boost Russian Production

Photo courtesy of Gazprom

Russian state oil producer Rosneft has reported increased Q1 gas production by 6% year-over-year. Rosnef report Q1 gas production of 16.72 bcm (590 bcf), 1% above the level of Q4 2015 and 6% above Q1 2015. Among the key factors in gas production growth was the start-up of two gas plants in Russia.

The Novy-Urengoy gas and condensate processing plant in Russia’s Yamal-Nenets autonomous district entered testing mode in Q4 2015. This facility will handle 11 million cubic meters of gas per day (388 mcfd) and 1700 tons of condensate per day.

A Gazprom investment, the Novy-Urengoy gas and chemical complex is located 30 km (18.6-miles) from city of New Urengoy. The design capacity allows for up to 400,000 tons of low-density polyethylene of various grades per year. When fully operational, this production facility will become the largest in Russia. In addition to core products, the complex under construction will produce a wide fraction of hydrocarbons and methane fraction. It is planned to use the gas produced at the Urengoy gas field as raw material for the production of ethylene and polyethylene.

The December 2015 commissioning of the gas processing plant at the Barsukovsky field (Yamal-Nenets) in December 2015 also contributed to Rosneft’s increased gas production.

Rosneft also said its associated gas utilization rate improved to 91% in Q1 2016, an increase from 87% in Q1 2015.

Production is expected to continue to increase. In Q1 2016, Rosneft and Statoil successfully completed a pilot project on the selection of efficient technologies for reservoir development in the North-Komsomolsk field (Yamal-Nenets) which has total recoverable reserves of 1.48 bn barrels of oil and condensate and 197 bcm (6.9 tcf) of natural gas.

Rospan is one of leading producers of natural gas in Russia. The company’s annual output comes to around 3 bcm (105 bcf) a year. Rospan’s gas is sold through TNK-BP and Gazprom Mezhregiongaz’s joint venture, Novo-Urengoi Gas Company.