Gazohim Texhno participated in V International Gas Forum took place in St. Petersburg                      

The V International Gas Forum took place in St. Petersburg. Sergey Dolinsky, the Director General, and Yevgeny Ryabov, the Development Director of the Techno Gazohim company, have participated in the Forum. The conference "The associated petroleum gas as a source of technical gases. The issues of associated gas preparation, components separation, storage, transportation and disposal. The use of the latest scientific developments in the field of gas conversion. Chemical utilization of natural gas" was held as part of the Forum.

Gazohim Techno company presented the report named "Conversion of associated and natural gas by means of the mini-GTL™ plant" at the conference.

In the course of discussion, the impact of low oil and gas prices on the competitiveness of APG conversion industries has been discussed.

Traditional APG reinjection into the reservoir in order to raise the formation pressure and oil production is the major competitive method of rational use in the segment of remote fields. The payback of APG reinjection projects is determined by the oil cost with account of the mineral extraction tax (MET). Since MET for synthetic oil is equal to zero, taking into account the tax maneuver (transfer of fiscal burden from the export duty to MET), the APG conversion into synthetic oil is investment attractive for the oil companies. This is the reason of the interest in the developments of Gazohim Techno companies operating in Eastern Siberia. The use of reinjection into the reservoir has geological restrictions and risks related to gas springs emergence — gas breakthroughs in oil producing wells.

The direction of APG conversion into electrical energy benefits as compared to other ways of APG rational use. The number of oil fields increased, where energy delivery to consumers began to pay off. The disadvantages of electric power generation projects consist in the high sensitivity of energy-related projects to APG composition and APG production profile.

The fall in oil prices is attended by fall in gas prices. According to the expert community, the natural gas production in Russia is excessive in the short and medium terms. The interest in GTL is determined by the search for new ways of gas monetization in addition to LNG and pipeline gas.

The synthetic oil in terms of its fractional composition is essentially a semi-finished product for marginal commercial products recovery. With account of possibility of the mini-GTL™ technology application both as a solution for remote oil fields with synthetic crude oil production, and for margin commercial products recovery, low oil prices are not currently the key determinants of the GTL technology competitiveness.