About This Study

About this Study In October 2007, the Global Gas Flaring Reduction (GGFR) public-private partnership coordinated by the World Bank Group co-hosted a forum in Moscow to discuss Associated Gas Utilization in Russia2. The GGFR asked PFC Energy to study APG flaring in the Russian Federation and present the results of that study at the forum. The GGFR also intends to provide the study to Russian federal ministries as an aid in developing policies and regulations on gas flaring and gas utilization. The study included analysis in four major areas: 1. The current environment in Russia 2. How other countries have improved utilization of APG 3. Hypothetical economics of commercializing APG and comparison of alternative uses, including Gas To Liquids (GTL), reinjection for Enhanced Oil Recovery (EOR), power generation, and gas processing 4. Recommendations to reduce flaring and create value for stakeholders in Russia’s gas industry. The study was conducted in a short period of five weeks, using public domain information and PFC Energy’s own information and resources. The authors did not have access to data about individual reservoirs, fields, wells, and flaring operations in the Russian Federation. The goal of the study, and of this report, was not to design an optimum gas utilization system, but to provide an overview of the technical, economic, regulatory, andpolitical issues that affect the flaring and utilization of APG in the Russian Federation and suggest the most productive avenues for future research and policy development.