RusEnergy

MOSCOW, April 2 (RIA Novosti) - TNK-BP [RTS: TNBP] and a leading Russian petrochemical company said Monday they have started processing associated petroleum gas in a joint venture set up in late 2006. In November, the Russian-British joint energy venture and Sibur Holding announced the establishment of a new JV to process associated petroleum gas (APG) produced by TNK-BP and other oil and gas producers in the Nizhnevartovsk region, in Western Siberia. Sibur owns 51% and TNK-BP 49% of the joint venture, which comprises two gas-processing plants in Belozerny and Nizhnevartovsk, and the facilities to transport APG to them. TNK-BP will provide long-term APG supplies to the enterprises. The joint venture will also purchase APG from other regional producers. As a result of associated petroleum gas processing, TNK-BP will receive 100% of dry lean gas, and Sibur will receive 100% of the liquid products. "The synergy gained from our project will simultaneously boost APG processing, ensure stability in petrochemical supplies and improve the environmental situation in the region by reducing gas flaring," a joint news release quotes Sibur President Dmitry Konov as saying. Sibur Holding was established in December 2005 after energy giant Gazprom announced it would reorganize the Sibur joint stock company into a new entity, Sibur Holding, as the final step in "the reorganization of the petrochemical business." "The joint venture provides an ideal opportunity for TNK-BP to build a foundation for the APG processing business in the Nizhnevartovsk region. This foundation creates several ways to monetize the associated gas, and also facilitates a reduction in current gas flaring. Improving the gas utilization rate will also lead to a reduction of greenhouse gas emissions, which supports Russia's obligations under the Kyoto Protocol," TNK-BP Executive Director German Khan said in November.