Rosneft Cleared to Build Siberian GPP

Russia’s Rosneft plans to build a new gas processing plant (GPP) in Western Siberia’s Khanty-Mansiysk region, the local government reported on October 7.

The Khanty-Mansiysk administration has granted Rosneft a land lease for the construction of the Maiysky GPP, it said in a statement. Rosneft aims to break ground on the project by the end of this year and commission it by March 2022. Its investment cost is rubles 22bn ($340mn).

The Maiysky GPP will process associated petroleum gas (APG) produced at Rosneft’s South-Balykskoye oilfield. Russia – the world’s biggest gas flarer, requires oil companies under law to utilise at least 95% of their APG. Many of the country’s leading producers are lagging behind this target, however, with Rosneft making use of just 84.4% of its APG last year.

Rosneft has secured state development funding for the Maiysky project. According to the regional government, the plant will contribute rubles 512mn/yr to the Khanty-Mansiysk budget and create 230 jobs.