The project was initiated in 2010 with the introduction of gas re-injection, at that time the first of its kind in Russia. In 2012, the Group also began to implement re-injection of associated petroleum gas, an important step in APG utilization. This technology allows Irkutsk Oil to significantly reduce the amount of emissions in accordance with Russian and International environmental standards, as well as to maintain reservoir pressure, increasing the condensate recovery rate.
The Group’s gas project is unique to Eastern Siberia. The company plans to expand its potential in the next five years by adding large-scale gas production facilities and transportation systems in Irkutsk region.
The Group is currently constructing a 3.6 million nm³/year gas processing plant at Yaraktinsky field which will process both natural and associated gas; a 196 km pipeline for transporting gas processed products from Yaraktinsky and Markovsky fields to Ust’-Kut; and an uploading terminal in Ust’-Kut for receiving, storing, and shipping liquefied petroleum gas (with a capacity of 161,000 tons per year). The LPG production (also called propane-butane mix) will be transported to Ust’-Kut in liquid form, from where it will be sent to customers by rail or trucks.
The Group plans to build two more gas-processing plants at Yaraktinsky field with a total capacity of 12 mln. nm³/year and a gas treatment plant at Markovsky field with a capacity of 6 million nm³/year. Hence, the total additional capacity would reach 18 mln. nm³/year. INK will ship stripped natural gas liquids to the Gas Processing Plant in a city of Ust’-Kut (also a part of the company’s gas project). The plant will produce valuable feedstock components such as gas condensate, propane, butane, and ethane, and the company plans to achieve a more than 97% recovery rate. In addition, the plant itself will be powered by electricity from recovered methane-. The liquefied hydrocarbons and gas condensate will be transported by rail and trucks (with the capacity of 800,000 tons and 1.2 million tons per year, respectively).
The Group plans to upgrade the gas processing plant with a polymer plant to utilize ethane which is to be extracted from ethane-rich gas of Yaraktinsky and Markovsky fields. This polyolefin plant would also be built in Ust’-Kut with a capacity of 500,000 tons of polyethylene (LLDPE and HDPE) per year and a possible extension to up to 1 million tons of production per year.The Group would employ the most advanced technologies available on the market. A gas-fired power plant with a generating capacity of 70 MWt is to be constructed in Ust’-Kut to supply electricity and heat to the plant. In total, Irkutsk Oil plans to process up to 7 billion cubic meters of gas per year by 2020.
A 3.6 million nm³/year gas processing plant at Yaraktinsky field
The socio-economic impacts of the Group’s Gas Project:
Development of the region’s significant gas reserves, which are currently dormant;
Improvement of the living standard in Irkutsk region, including in its northern areas, due to an increase in average wages and contributions to state budgets (from 2016 to 2032 years -the potential contributions to the regional and local budgets amount to 54 billion rubles);
Development of the regional labor market creating more than 450 new high-skilled jobs at the new production facilities, and several thousand jobs during the construction period;
Infrastructural development of Irkutsk region’s northern areas (formation of gas transportation and consumption infrastructure, construction of additional electricity-generating facilities);
Supply of top-quality chemical and gas products, which will enable creation of new industries.