OREANDA-NEWS. October 11, 2007. TNK-BP is planning to sell an additional 25 billion cubic meters of dry lean gas obtained from casinghead gas in 2012—2020, declared TNK-BP Deputy Executive Director, Gas Business Development, Alastair Ferguson at the international conference “Utilization of Casinghead Gas in Russia” held on October 9 in Moscow.

As was explained to the Petroleum Information Agency (PIA) at TNK-BP, the company currently sells approximately 7 billion cubic meters of dry gas each year. It plans to spend about $1.1 billion on implementation of a casinghead gas utilization program in 2007—2012, and these measures will make it possible for the company to sell up to 25 billion additional cubic meters of dry gas in 2012—2020. 

As A. Ferguson communicated to journalists in the back rooms of the conference, besides these investments, the company plans to invest an additional $320 million in construction of a third block at the Nizhnevartovsk Gres Power Station.  Furthermore, the size of investments that the company plans to make in development of a gas utilization system at Uvat and Verkhnechonsk fields is still unknown.  Data on expenditures on gas utilization from those two fields will appear later, after the project for developing areas will be finalized.  In particular, construction of a gas compressor electric power station is planned at Uvat, noted A. Ferguson.

According to Ferguson, gas utilization is a necessary measure.  However, if the government imposes strict requirements, then serious risks may occur.  “In particular, without gas measurement systems in Russia, strict norms (as required by installing meters—PIA) may cause fields to close and a reduction in production volumes,” said A. Ferguson.

Excessively strict administrative measures may lead to a deterioration, rather than an improvement in the industry’s situation, he believes.

In 2006 the company produced 11.5 billion cubic meters of casinghead gas from its 143 fields.  It used approximately 800 million cubic meters of gas for its own needs, and supplied 8.1 billion cubic meters of gas for processing.