Report of “Gazohim Techno” at “Associated Petroleum Gas 2014” Conference: Influence of Governmental Regulation on Application of Technologies of APG Processing. 

The report of Evgeniy Ryabov, Business Development Director, at the “Associated Petroleum Gas 2014” Conference held by CREON company on the 26th of March, 2014 was dedicated to the influence of measures of the governmental regulation on practice in the application of technologies of APG processing.

It is pointed out that the existing projects on APG utilization fall into the three categories:

1)  a project is self-liquidating and improves profitability of an oil extraction project;

2) a project is not self-liquidating but an oil extraction project still stays profitable;

3) realization of an APG utilization project leads to negative profitability of an oil extraction project.

The data contained in the report give the evidence that measures for toughening sanctions for associated gas flaring are exhausted. At present, efforts of government authorities and oil-and-gas business should be focused on shifting economic efficiency of APG utilization projects of the second and third categories from negative to positive.

The hopes of oil companies for new technological solutions for APG processing are stalled on the problem of the lack of industrial-scale confirmation of new technologies. Mr. Ryabov points out that this deadlock can be broken by assignment to innovative companies sites for construction of  experimental-industrial plants according to advanced developments.

Nowadays, gas synthesis production (synthetic diesel fuel, synthetic oil) obtained with the help of modern technologies is referred to as rental raw materials with the maximum level of fiscal withdrawals being applied.

A set of measures of technical and fiscal stimulation will allow to achieve positive profitability for processing of all currently unused resources of associated petroleum gas of small and medium remote oil deposits, non-associated gas of gas-condensate fields and low-pressure natural gas.

Clusterization of APG resources is found to be a significant reserve for further development. It supposes collecting of associated gas from small and medium deposits into common infrastructure for processing and sales of products.