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Russia: Associated petroleum gas a top priority for Gazprom

24th April 2013

Gazprom flags up APG as top priority to secure energy efficiency and low-carbon development in Russia

Gazprom: Associated petroleum gas a top priority
APG is a valuable resource which can be used in power generation, gas processing, gas chemistry and oil production

Associated petroleum gas (APG) is now a top priority and growing prospect for Gazprom, the Russian giant announced on Tuesday, as it seeks to move toward low-carbon and energy efficient economic development. The company this week approved a set of activities aimed at boosting the efficiency and use of APG in Russia.

“APG utilisation… [is] one of Gazprom's priorities fully in line with the global trends towards low-carbon and energy-efficient economic development,” the company said in a written statement. Useful APG utilisation by Gazprom has increased by 11 per cent to 70 per cent over the last four years, according to company figures.

APG, also known as flare gas or associated gas, is a form of natural gas released during petroleum extraction operations. Although a waste product and usually burnt off in gas flares, APG is a valuable resource which can be used in power generation, gas processing, gas chemistry and oil production.

In partnership with independent producers and other oil companies, Gazprom has implemented and developed joint projects aimed at extracting, treating and transporting APG and natural gas from the Yamal-Nenets Autonomous Area.

“In cooperation with LUKOIL, a project is being developed for processing associated petroleum gas from the Komi Republic at the Sosnogorsk GPP,” read Gazprom’s statement.

Gazprom sees APG increasing steadily across Russia. According to company estimates, the expected volume of dry stripped gas recovered as a result of APG processing to be fed by independent producers into Gazprom's gas transmission system in 2013 will grow from 20.9 to 22.3 billion cubic meters  – a 6.7 per cent growth against 2012.