Russian Federation: Rosneft Associated Gas Recovery (DCF)
(Danish Carbon Fund)
The Associated Gas Recovery Project for the Komsomolskoye Oil Field, operated by “Rosneft-Purneftegaz” (RN-Purneftegaz), aims to reduce carbon dioxide emissions from oil production activities through the reduction of associated petroleum gas (APG) flaring. APG mostly consists of methane. During flaring of APG, carbon dioxide is formed (methane reacts with oxygen producing CO2 and water) and released, causing climate change.
The oil production at the Komsomolskoye oil field is expected to increase, causing an increase of APG volume and, consequently, flaring. To avoid this increase in flaring, Rosneft decided to implement a Joint Implementation project, which consists of the installation of an APG booster compression station that will allow to treat (dehydrate) and clean the associated petroleum gas, converting it into natural gas, and sell it to Gazprom via a new 5.5 km pipeline. Additionally, after treatment, a small part of APG components will be added to the oil products, increasing the oil production level.
The project has a high investment cost of about US$ 60 million. However, it allows a complete utilization of the APG at Komsomolskoye oil field, reducing flaring of 1.3 million m3 of associated petroleum gas. As a result, the project will reduce greenhouse gas emissions of about 1 million tons of CO2e during 2011-2012. The project also converts the previously considered “waste” product into a valuable gas.
Additionally, the project has a positive environmental impact by reducing, on average, the emissions of soot, carbon monoxide, sulfur dioxide, nitrogen dioxide, and nitrogen oxide by about 72% compared with the baseline. Furthermore, because the flare burns at an average temperature of 1700°C, the project reduces thermal, visual (light) and noise pollution to the local environment. It also creates jobs during the construction and operation of the APG booster compression station.