Construction of the Ethane-Containing Gas Processing Complex began in the Ust-Luga region

May 21, 2021

Today, in the area of ​​Ust-Luga, Leningrad Region, construction of the Ethane-Containing Gas Processing Complex (CPEG) has begun - a unique cluster in the world that combines gas processing, gas chemistry, and natural gas liquefaction. 

The ceremony was attended by Deputy Prime Minister of the Russian Federation Alexander Novak, Chairman of the Management Committee of PJSC Gazprom Alexey Miller and General Director of JSC RusGazDobycha Konstantin Makhov. The guests of honor of the ceremony were the Governor of the Leningrad Region Alexander Drozdenko and the Chairman of VEB.RF Igor Shuvalov.

The KPEG will include two powerful enterprises. The first is an integrated complex for the processing and liquefaction of natural gas (Gas Processing Complex or GPK KPEG; operator - LLC RusKhimAlliance, a joint venture between Gazprom and RusGazDobycha). The second is a gas chemical complex technologically connected with the gas chemical complex (MCC KPEG; operator - Baltic Chemical Complex LLC, a subsidiary of RusGazDobycha).

GPK KPEG will become the largest gas processing enterprise in Russia and one of the most powerful in the world in terms of processing volume (45 billion cubic meters of gas per year), as well as the leader in terms of liquefied natural gas production in the North-West Europe region (13 million tons of LNG in year). About 18 billion cubic meters m of gas after processing will be sent to the gas transmission system of Gazprom.

Ethane, a valuable raw material for the gas chemical industry, will be an important commercial product of HPK KPEG. The ethane fraction will be supplied to the MCC KPEG. The capacity of the MCC will be more than 3 million tons of polymers per year - the largest unit capacity in the world.
The raw material base for the gas processing complex will be natural gas with a high ethane content. At first, such gas will be supplied to the enterprise from the fields of the Nadym-Pur-Tazovsky region of the Yamalo-Nenets Autonomous Okrug; later on, the Tambeyskoye field, the largest in terms of reserves on the Yamal Peninsula, will be involved. Gas will be transported through main gas pipelines specially designated for ethane-containing gas.

“Here, in the North-West of the country, in the Leningrad Region, we have started the construction of a fundamentally new high-tech industrial cluster. Extremely important for the region and the whole country. Deep processing is the most efficient way to use the potential of Russia's huge reserves of ethane-containing gas, ”said Alexey Miller.

“The creation of a gas chemical complex within the framework of the KPEG is a unique project for Russia, which ensures the production of high-margin products and a twofold increase in the export of domestic polymers. The project will bring together a large team from all over Russia - we will invite the best brains and hands, and we will attract the best foreign specialists, ”said Konstantin Makhov.

VEB.RF, in partnership with Gazprom and RusGazDobycha, is participating in the preparation and launch of a project in Ust-Luga, one of the largest in the world. Funding from VEB.RF made it possible to start work on the site in a timely manner. It is important that the project is being implemented on the principles of responsible investment and the ESG agenda. The complex effect of its implementation will positively affect the quality of life of people in the Leningrad Region and the development of a modern urban environment in Kingisepp, "said Igor Shuvalov.

Gazprom and RusGazDobycha signed the Master Agreement on the terms of implementation of a joint project to develop the Tambeyskoye field.
According to the document, Gazprom Nedra (a 100% subsidiary of PJSC Gazprom) and RusGazDobycha are creating on a parity basis a joint venture, LLC Tambei Gazdobycha, with licenses for the use of subsoil plots where the Tambeyskoye field is located.
The joint venture will develop and ensure the development of the Tambeyskoye field with the start of gas production from 2026.

In addition, RusKhimAlliance (operator of GPK KPEG) and Linde GmbH entered into an agreement on strategic cooperation in the areas of deep processing and liquefaction of natural gas, gas chemistry, creation and development of advanced technologies.
The agreement provides for the implementation of a set of measures aimed at the creation and implementation of joint technologies, as well as the localization of the production of equipment and materials for the construction of enterprises for the liquefaction and processing of natural gas. Another area of ​​cooperation is the development of innovative technologies for deep processing of gas, including the production of synthetic hydrocarbons.

OOO Gazprom neftekhim Salavat and OOO RGD Pererabotka Salavat (a subsidiary of RusGazDobychi) also signed an agreement on the provision of services to perform the functions of the sole executive body of OOO Gazprom neftekhim Salavat by the managing organization OOO RGD Pererabotka Salavat.

reference
The Tambeyskoye field is located on the Yamal Peninsula within the boundaries of three license areas owned by PJSC Gazprom - Zapadno-Tambeyskoye, Severo-Tambeyskoye and Tasiyskoye.
The reserves of the field are more than 5.2 trillion cubic meters. m of gas and 380 million tons of oil and gas condensate.