RusEnergy

18 September 2007 - Upstream OnLine - Novatek has started producing methanol at the Yurkharovskoye gas condensate field in a move which will help the Russian gas producer slash its costs at the field, which lies on the Tazov peninsula deep within the Arctic Circle. Methanol is used to prevent condensation in gas-gathering systems in cold areas such as Yurkharovskoye. The plant will produce 12,500 tonnes of methanol per year, Novatek said. Before the methanol plant was brought on stream, methanol deliveries were made to the field via the Ob River and Tazov Bay in summer, and via a seasonal road during winter. Both options carried considerable cost, although Novatek would not give a figure. Novatek added the on-site methanol plant also cuts out the environmental risks associated with delivering methanol by river and road, as well as cutting production costs and ensuring operational stability.