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Salym Petroleum Launched LPG Plant

Source: www.gulfoilandgas.com 5/18/2012, Location: Asia

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%.

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