RussiaAssociatedGasU/liza/onStudy

PerrineToledano,ShayBanerjee,TomRollasonThankyoutoTomMitroforhisthoroughreview

Highbutgraduallydecliningflarevolumes

Uniqueflarepenaltystructure

Risingelectricityprices

Needformoreinvestmentininfrastructureand

technology

Strategytoincreaserelianceoncoal

Summaryoffindings

S  RussiahasthelargestlevelsofAssociatedPetroleumGas(APG)flaringintheworldwhetheritisaccordingtona/onalsta/s/csortothesatellitesta/s/cs.ThelaMerarehoweverfarworsethantheformer.Companies’misuseofAPGcostRussiaUS$13billionannually,accordingtoRussia’sNaturalResourcesMinistry.

S  However,theRussianFedera/onhastakenposi/vestepstowardreducingflaringinthecountry.Itsmostsignificanteffortwasthe2012enactmentofDecree1148,whichexpandsonaninnova/vepenaltystructurefirstputinplacein2009.

S  Therecentlyenactedregula/ons,combinedwithhigherelectricityprices,havespurredinvestmentinAPGu/liza/oninfrastructure.

S  Unfortunately,themajorityofthisdevelopmentappearstobeoccurringatthebiggestfieldsclosetoinfrastructure,whilesmall-tomediumfields,par/cularlyinremoteareas,s/llfacechallengesindevisinganinfrastructuresolu/on,whicharecompoundedbythepresenceofstate–ownedcompaniesexer/ngtheirmonopolypower.

S  Interes/ngly,manyinnova/vesolu/onsarebeingdevelopedtocatertotheneedsofthesmalltomediumfieldsinremoteareas.

S  Nevertheless,Russia’sdesiretoincreasecoalintheenergymixiscounterac/ngtheposi/vedevelopmentinAPGuse.

0510152025303540

bcmflared

in2011

Top20gasflarersintheworld(2011)Sta/s/csonAPGflaring

Regionalsta/s/cs

Companiesinvolved

S  Russiaisthenumberoneflarerasof2011,accoun/ngforroughly26%oftheglobaltotal.

S  Duringtheperiodfrom2006to2011,theWorldWildlifeFund(WWF)es/matedthatRussiareducedflaringbyroughly30%.Despitethisreduc/on,Russia’sflarevolumesin2011weres/llmorethandoublethatofNigeria,theworld’ssecondlargestburnerofAPG.

S  Incen/vizedbyastrongpenaltyestablishedin2009andstrengthenedin2012,theoilindustryhasbeenincreasingtheu/liza/onofAPGeveryyearsince2011.RussiaincludedanAPGu/liza/ontargetvalueof95%for2015intoitsenergystrategy.Thetargetwasnotreachedsincetheu/liza/onwasonlyabout85%atthestartof2015.Thevolumeofgasflaredfellby22.8%in2014andby14%in2015.Thisisaconsiderableimprovementascomparedto2011.

Source:NOAAsatellitedata

Thesta/s/csofAPGflaringinRussia

Thesta/s/csofAPGflaringinRussia

(*)CentralDispatchOfficeoftheRussianFuelandEnergyIndustry(CDUTEK).Source:Satellitees/matesarefromNOAA/GGFR

Sta/s/csonAPGflaring

Regionalsta/s/cs

Companiesinvolved

S  Actualvolumesareuncertainasofficiales/matesreport15billioncubicmeters(bcm)areburnedperyearwhilesatellitees/matesputthenumberashighas50bcmasof2011.Officiales/matesgive10.5bcmasof2015.

S  Thisdiscrepancyinflaringfiguresisduetometeringdeficiencies(asof2014,84%offacili/esinRussiaareequippedwithmeasuringdevices)withmethodologiesdifferingbetweenoilfieldsandsomefieldsnothavingmeteringequipmentatall.Itisalsolikelythatgovernmentandcompaniesarerou/nelyinconsistentandunder-reportdata.

FlarevolumesinRussia,na?onalsta?s?csandsatellitees?mates,bcm/year

S  In2010,gasprocessingplants(GPPs)used48%oftheAPGproduced,internalneeds(orownuse)15%andconsumers13%.

S  In2014-2015,49%ofproducedAPGwasprocessedatGPPs,20%wasforown-useandalsoincludedlosses,8.5%wassuppliedtothegastransporta/onsystem,and6.7%wasdeliveredtolocalconsumers.Themajorchangecomesthusfromtheon-siteconsump/onbutitisnoteworthythatthesenumbersincludelossesandwastages.

Thesta/s/csofAPGflaringinRussia

Sta/s/csonAPGflaring

Regionalsta/s/cs

Companiesinvolved

APGusein2010(bcm,%) APGuseandflaring2001-2011(bcm)

Source:KPMG,WWF(2012)Source:Loe,Ladehaug,2012

S  ThemajorityoftheAPGflaringoccursinWesternSiberia(inKhanty-MansiAutonomousOkrug(KhMAO)(25%)andYamalo-NenetsAutonomousOkrug(YNAO)(11%))andinEasternSiberia(44%).

S  Asof2015,theSiberianFederalDistrictexperiencesthelowestrateofAPGu/liza/onat58.7%.ThedistrictswiththehighestAPGu/liza/onratearetheSouthernFederalDistrict(96.3%)andUralFederalDistrict(93%).

Thesta/s/csofAPGflaringinRussia

Sta/s/csonAPGflaring

Regionalsta/s/cs

Companiesinvolved

Geographicdistribu?onofmainAPGflaringvolumes(bcm)

Source:KPMG,WWF(2012)

S  Inrela/velynewoil-producingregions,suchasEasternSiberia,gasprocessinginvestmentisdwarfedbyfundingfordevelopmentandproduc/onofoilfieldsandsoalthoughtheyproducelessAPGthanolderfields,rela/velytotheoilproduc/on,theyendupflaringahigherpercentageofthetotalAPGproducedinRussiathananyotherregion.

Thesta/s/csofAPGflaringinRussia

Sta/s/csonAPGflaring

Regionalsta/s/cs

Companiesinvolved

APGflaringbyregion,2010-2012(bcm)

Source:CarbonLimits,2013

S  ThefiveoilcompaniesSurgutenemgaz,TNK-BP,Rosnem,Lukoil,andGazpromNemrepresent80%oftheflaredgasinRussiaasof2011.Rosnem,thestate-ownedoilcompanyhastradi/onallybeenthecompanywiththelowestlevelofAPGu/liza/onwhichithasbeenimprovinginthelastfiveyears.

S  95%ofAPGu/liza/onwasachievedbyfivecompaniesin2013:Gazprom,SalymPetroleum,SakhalinEnergy,SurgutnemegazandTatnemwiththelaMertwoalreadyreachingthislevelin2006.Reportedly,thebestu/liza/onratesforAPGprojectswithforeignpar/cipa/onisrecordedforSakhalin-2andSalymPetroleum.However,dataonAPGflaringseemsabsentforSakhalin-1(ExxonNemegaz)andKharyagaPSA(TotalandStatoil).

S  Overall,privateoilcompanieshaveperformedbeMerthanstate-ownedcompanies.

Whichcompaniesareinvolved?

Sta/s/csonAPGflaring

Regionalsta/s/cs

Companiesinvolved

Source:Loe,Ladehaug,2012

APGfaringbycompany,2001-2011(bcm)

Source:Rosenem

Whatisthelegalandfiscalframeworkinplacetostopflaringandincen/vizeAPGuse?

Agencies

Legalframework

Fiscalframework

Governmentins?tu?onsinvolvedinregula?onofoilproduc?on/flaring

Descrip?on

MinistryofEnergy Responsiblefordramingandimplemen/nggovernmentpolicyandlegalregula/onintheoilandfuelsector

MinistryofNaturalResourcesandEcology

Administersthelicensingregimeandcoordinatesandsupervisestheagenciesresponsibleforoilandgasregula/on

FederalAgencyforSubsoilUse

Responsibleforregula/ngexplora/onandextrac/onofoilandgas

Whatisthelegalandfiscalframeworkinplacetostopflaringandincen/vizeAPGuse?

Agencies

Legalframework

Fiscalframework

S  Tradi/onally,therehasbeenalackofaneffec/velegisla/veframeworkforaddressingAPGinRussia.

S  Partlythishastodowitheconomicfactorsentwinedwithoilandgasproduc/ondomina/ngthepoli/calprocessoverenvironmentalconcerns.Coupledwithinconsistentenforcementthishasledtounder-investmentinAGPu/liza/oninfrastructure.

S  In2009,aworkinggrouponAPGu/liza/onwasestablishedbytheMinistryofEnergytoimprovethelegisla/veandregulatoryframeworkfollowingPresidentPu/n’s2007StateoftheUnionAddressannouncingthatAPGu/liza/onwouldbecomeana/onalpriority.

S  In2010,amendmentstotheFederalLaw“OnElectricity”wereintroduced,whichweredesignedtofacilitatepriorityaccessforpowerproducedbyAPGintotheUnifiedNa/onalElectricityGrid.Themajorimplementa/onobstacleistranspor/ngAPGproducedfromoilfieldstogeneratorsconnectedtothegrid.

S  In2012,anamendmenttoa2009decreesharpensthefinesonflaringwhileprovidingincen/vesforinfrastructureconstruc/on.

Regula?on/PoliciesonGasFlaring/AGuse

Descrip?on

DecreeNumber344June2003

Establishesastandardenvironmentalfineforallairpollutants.Formethane,thestandardfineis50rublespertonofmethanewhenemissionsarewithintheemissionlimitsestablishedbyanairpollu/onpermitand250rublespertonofmethanewhenemissionsareoutsidethelimitsofthepermits.

DecreeNumber1148November2012(AmendingDecreeNumber7ofJanuary2009)

Setsamul/plierforemissionsofAPG,suchthatflarersin2013wererequiredtopay12/mesthestandardenvironmentalfineforAPGemissions.Forallyearsamer2013,this“mul/plier”is25(Art.2).Furthermore,themul/plierincreasesto120iftheoperatordoesnotpossessadequatemonitoringequipment(Art.5).Theapplicablemul/plierisfurtherincreasedorreducedbasedontheregionwhereafieldislocated.(Art.5).Excep3ons:Themul/plierisnotapplied,however,forthefollowing:(1)  APGemissionsthatarenotgreaterthanthemaximumpermissible

valueforAPGemissions(Art.2).Currentlythisvalueisequalto5%ofproducedAPG.ForallAPGemissionsuptothislevel,theoperatorpaysthestandardenvironmentalfine.

(2)  Certainplotswherecumula/veproduc/onisunder1%ofes/matedrecoverablereserve;andtheplotsthatareeitherwithinthe3yearsofexceedingthemaximumpermissiblevalueorwithintheyearsduringwhichthecumula/veproduc/onisunder5%ofes/matedrecoverablereserves;whichevercomesearlier(Art.3).

(3)  FieldswhereannualAPGvolumeisbelow5millioncubicmetersornon-hydrocarboncomponentsrepresentlessthan50%ofthegas(Art.6).

Whatisthelegalandfiscalframeworkinplacetostopflaringandincen/vizeAPGuse?

Agencies

Legalframework

Fiscalframework

Whatisthelegalandfiscalframeworkinplacetostopflaringandincen/vizeAPGuse?

Agencies

Legalframework

Fiscalframework

Regula?on/PoliciesonGasFlaring/AGuse

Descrip?on

DecreeNumber1148 Inaddi/ontoserngthemul/plier,DecreeNo.1148seekstoresolvetheaboveproblembyestablishingafiscalincen/veforoperatorstoinvestinAPGu/liza/onprojects.Operatorswhoinvestinsuchprojectsareallowedtosubtractthecostsofsuchinvestmentsfromtheapplicablefines(Art.8).Eligibleprojectsincludegaspipelines,compressorsta/ons,separa/onunits,facili/esproducingelectricity/heat,andreinjec/onequipment.Alsoincludedisthecostofequityforinvestorspar/cipa/nginjointprojectswithoperatorswhoinvestinsuchequipment.TheDecreealsoallowsoperatorsofmul/plefieldstoaggregatecountrywideAPGu/liza/onvis-à-visflaringforpurposesofcalcula/ngthe5%minimumpermissibletarget(Arts.11-15).Theseprovisionshelpensurethatinvestmentinu/liza/onprojectsaremostefficientlydirectedtofieldswheretheyaremostviable.In2013,thetotalpenal/esleviedonoilcompaniesamountedto2.2billionrubles.In2015,theheadsoffiveoilcompanies,suchasLukoil,GazpromNemandSurgutnemegas,aswellasBashnemandTatnemsignedaleMerforthePresidentaskingtolowerthemul/plyingra/oasameansofcurbingtheRussiancrisis.

Infrastructuremonopolies

S  Insteadofbuildingpipelines,operatorsatremotefieldscouldrelyontheextensivenetworkofGazprom,theRussiangasmonopoly.

S  Russianlawinfactgrantsnon-discriminatorythirdpartyaccesstoGazprompipelinesbutonlyifthereissparecapacityandthegasisofrequisitequality(therulesofimplementa/onarehowevertoolimitedtomakethelawenforceable).AmendmentsinDecember2012(No.241-ФЗ)tothe1999LawonGasSupplygivepriorityaccesstosparecapacityingaspipelinestothedrygasproducedfromAPG.Furthermore,Gazprom'srefusaltograntaccessmaybeappealedincourt.GazpromhashowevertheexclusiverighttoexportnaturalgassogasproducerswillingtoexporttheirgashavetosignanagreementwithGazprom.Rosnemiscurrentlyaskingthegovernmenttoendthismonopoly.RosnemobtainedtherighttoexportLNG.

S  Inaddi/on,Gazpromdoesn’twanttodiminishitsmonopolyovertheRussiandomes/cgasmarketwhereasoilcompaniesareallowedtoeitherselltheirgasdirectlytoGazpromorrentspaceinGazprom’spipelines.Asaresult,thepriceGazpromoffersoilcompaniesforthedrygasisomenverylowortherenttheychargeforspaceinthepipelinesisveryhigh.

S  IntheremoteareasofWesternSiberiawhereoilproduc/onishighbutgaspipelinestooexpensivetobuildgiventhelongdistancetomarket,therehasbeenliMleexcesscapacityonGazprom’spipelinesforthedrygasofoilcompaniesandun/ltherecentenforcementofDecree1148(seenextslide)thecompaniesdidnotwanttoenterintocoopera/veprogramstoexpandtheinfrastructure,despiteGazpromproposingsuchprograms,preciselybecausetheyconsideredthecosttoexceedthegain.WhereGazprom’sgasproduc/onhasbeendeclining,Gazpromhasbeenmoreflexibletoallocatesparecapacityonitspipelines.

S  Inaddi/on,inWesternSiberiatherearenotenoughgasprocessingfacili/esandfiveoutofthesevenexis/ngonesareownedbythecompanySibur(state-ownedun/l2010)whichdefactoexertsamonopoly(seeslide19).Inaddi/on,processingfacili/esdatebacktotheSovietUnionera.Thecombina/onofbothfactorshaveactedasadisincen/vefortheoilcompaniesthatseekacommerciallyviableoutletfortheirAPG.

Infrastructure

PowerGenera/on

GTL

Petrochemicalsindustry

Infrastructureconstruc/onspree

S  However,mo/vatedbyadesiretoachievethe95%APGu/liza/onratethatwouldtriggerthemul/plierexemp/onspecifiedinAr/cle2ofDecree1148,thebiggestoilcompanieshaveinvestedininfrastructurestar/ngin2011.Thisinfrastructuregenerallyequipsthebiggestfieldsrela/velyclosetotheexis/ngnetworks.

S  Rosnem:Thecompanyhasbeenexpec/ngtoreach80%ofAPGu/liza/onmostlybyconstruc/nggastransporta/onpipelinesfromVankorskoyeandMalo-Balykskoyefieldsaswellasanumberofgasboostercompressorsta/onsatitsfieldsinWesternSiberia(Komsomolskoye,Kharampurskoye,Priobskoye),EasternSiberia(Vankorskoye),andSakhaline(Odoptu-More).

S  Gazprom-nem:ThemajorprojectsofGazpromnemincludetheconstruc/onofGPPatYuzhno-Priobsksyecompressorsta/on,Yety-PurovskayaandMyldzhinskayacompressorsta/onsaswellastheexpansionofagastransporta/onsysteminOrenburgregioninordertosupplyAPGtoOrenburggasandchemicalcomplex.

S  Lukoil:opera/ngprimarilyinWesternSiberia.Itconstructed18compressorsta/onswithin2011-2013,above700kmofgaspipelinesandmul/phasepumpsta/ons.

S  Russnem:In2014itlaunchedtheejectorsta/onattheoil-processingplantatNizhne-Shapshinskoyefield,commissionedagaspipelinefromtheoil-processingplantatFedyushkinskoyefieldtothegasturbinepowersta/onatIgolsko-Talovoyefield,addedtwoaddi/onalJenbachergas-pistonunitstoincreasethenominalinstalledcapacityofYeguryakhskoyefieldpowercomplexupto9.8MW,andsetupagasboileratVarioganskoyefield.RussNemhasdevelopedaGasProgramfor2015-2017targe/ngAPGu/liza/onra/oandpowerefficiencyincludingtheconstruc/onofgaspipelinesandcompressors.

S  SomeofthesepipelinesconnecttoGazprom’snetworkandsomeotherpipelinesandGPPsenablethesecompaniestoselldirectlytothedomes/cmarket(gastraders,refineries,endconsumers,Sibur–seeslide19)increasingtheirtotalmarketshareto35%withGazpromhaving65%ofthedomes/cmarket.Gazprom’sdomina/ngposi/ononthedomes/cmarketdiminisheseveryyear.

Infrastructure

PowerGenera/on

GTL

Petrochemicalsindustry

Otherinfrastructuresolu/onsforsmalltomediumfields

Infrastructure

PowerGenera/on

GTL

Petrochemicalsindustry

S  Someini/a/vesarespearheadedintheKhMAO-YugraandSamararegionstoensuresustainableAPGuseinacontextofthehugeinfrastructureneedsfacedbysmalltomediumfields.

S  Since2012,intheSamararegionwheretheoildepositsarespreadoverremotedistancesfromtheexis/nggasprocessingplant,3compactGPPprojectswithasmallcapacityof18-80millioncubicmetersperyearwereimplementedbyoilcompanies(eg:TaynetattheIrgizfield).ThegasproductsareconsumedintheregionthatisoneofthetopindustrialregionsofRussia.

S  InKhMAO–Yugraregion,thenon-profitstate-supportedYugraGasProcessingClusteristakingprac/calstepstowardsop/mizingtheAPGu/liza/onratebyjoiningtheeffortsofoilandgascompaniesintoacollec/ve“APGprocessingcomplex(feedstockcapacityof600millioncubicmetersperyear,pipelinefordrytoppedgassupplytoGazprom’stransportsystem),LNGplantforautonomousgassupply(capacityupto25tonsperhour)andAPGtonaturalgasconversionunit(capacityupto1thousandcubicmetersperhour)”(CreonEnergy,2015).Thegoalistoclusteroilcompanies,gasprocessing,poweru/li/es,highereduca/onins/tu/ons,engineeringfirmsandfinancialsins/tu/onstogethertofosterinnova/onaroundAPGusewhilesavingcoststhrougheconomiesofscale.

Source:Presenta/onbytheGovernmentofKhMAO-Yugra,2013

PowerGenera/on–Closetothegrid

S  Intradi/onaloil-producingregionsofRussia,powerneedsaretypicallymetwithelectricityfromthegrid.

S  However,astheRussianpowersectorhasslowlyliberalized,electricitypriceshaveincreased(byupto20%annuallyinsomeareas),makingAPGpowerplantsamoreviablealterna/ve.Theseplantseitherpar/allyorfullyoffsetthecostsofgridobtainedelectricityinareaswitholdorconstrainedelectricitydistribu/onsystems.

S  Forexample,in2013a315-MWcap/vegasturbinepowerplant(thelargestofitskindinRussia)wascommissionedatthePriobskoyefield(ownedbyRosnemandGazprom-neminWesternSiberia)foron-siteconsump/on.Previously,thefieldhadbeensuppliedbyelectricityfromthegrid.

S  Similarly,in2008,TNK-BP(nowownedbyRosnem)setupajointventurewiththepowergenera/oncompanyOskarshamnsverketsKramgruppABtoconstructnewpowerplantsinNizhnevartovsk.Thejointventurereachedacapacityof1600MW.Theobjec/vewastoensureuninterruptedsupplyofelectricitytothecompany’sopera/onswhenelectricitytariffsareincreasingandanoutletfortheAPGthatisinexcessofthecompany’sneeds.

S  ItishowevernoteworthythatRussia’sstrategytodiminishitsrelianceongasandincreasetheshareofcoalinthefuelconsump/onstructureisworkingagainsttheobjec/veofreducingflaring.

Infrastructure

PowerGenera/on

GTL

Petrochemicalsindustry

PowerGenera/on–Remotefromthegrid

S  Foroilfieldsfarfromthegrid,localpowergenera/onmaybethebestwaytou/lizeAPG.FieldsinareassuchasTiman-Pechora,thewesternpartsofKhMAO,TyumenandEasternSiberiacannotbepoweredwithelectricityfromthecentralizedpowergrid.

S  Typically,thesolu/onwastouselocalizeddiesel-poweredplants.Recently,alargenumberofoilfieldshaveinstalledsmall-scalegasturbinepowerplantstoincreaseAPGu/liza/on,savingontheinvestmentindiesel-firedpowerplantsandonthefueltorunthem.

Source:EncyclopediaofSafety

Infrastructure

PowerGenera/on

GTL

Petrochemicalsindustry

GastoLiquids–Smallremotefields

S  ThemajoroilcompaniesinRussiaareconsideringresor/ngtotomodularGastoLiquids(GTL)technologyfortheirAPG.Thistechnologyispar/cularlyrelevantforsmall–tomediumfieldsinremoteareaswherepipelinesandgasprocessingaredifficulttoaccess.

S  In2014,Rosnem,inpartnershipwiththeRussianfirmGazohimTechno,builtagas-to-liquidsdemonstra/onplantatRosnem’sAngarskPetrochemicalComplexinIrkutskOblast(South-EastSiberia).

S  Theplantu/lizestheAPGfromseveralremotesmall-andmedium-sizedfieldsandhasathroughputcapacityof10millioncubicmetersofgasperyear.

S  Itproducesapproximately100barrelsperdayofsynthe/ccrude.

S  In2015,GazohimTechnoalsostartedtheconstruc/onofapilotminiGTLplantforprocessingupto12millioncubicmetersofAPGperyearatthefieldinKomiRepublic.

S  Gazohim’smini-GTLtechnologyisacombina/onofaproprietarypar/aloxida/onprocesswiththeFischer-Tropschtechnology.Itisexpectedtoresultinsmallerenvironmentalfootprintandlowercapitalandopera/ngcosts.

Infrastructure

PowerGenera/on

GTL

Petrochemicalsindustry

Petrochemicals

S  SIBUR,apreviouslystate-ownedcompany,isanintegratedgasprocessingandpetrochemicalcompany.SIBURownsandoperatesRussia’slargestGPPsintermsofAPGvolumes,mostlylocatedinWesternSiberiaandisaleaderintheRussianpetrochemicalsindustry.Sibur’sinfrastructureincludessevenoutofthenineexis/nggasGPPsinWesternSiberia,fivecompressorsta/ons,andthreegasfrac/ona/onunits(GFUs).Asof31December2014,SIBURhadAPGprocessingcapacityof23.1bcmperannumandrawNGLfrac/ona/oncapacityof8.8milliontonsperannum.

S  SIBURhas2businesssegments:1)feedstockandenergysegmentwhichcomprises(i)gatheringandprocessingofAPGpurchasedfromRussianoilcompaniesofWesternSiberia,(ii)transporta/on,frac/ona/onandotherprocessingofNGLeitherproducedinternallyorpurchasedfromoilandgascompanies,and(iii)marke/ngandsalesofenergyproductsontheRussianandinterna/onalmarkets

S  Siburusessomeoftheenergyproductasfeedstockforitssecondpetrochemicalssegment,whichprocessesthemintovariouspetrochemicals,includingbasicpolymers,synthe/crubbers,plas/csandproductsoforganicsynthesis,aswellasintermediatesandotherchemicals.Siburoperates“threesteamcrackerfacili/es,onePDHunit,twobasicpolymersproduc/onplants,manufacturinglowdensitypolyethylene(LDPE)andpolypropylene(PP),threesynthe/crubbersproduc/onplants,manufacturingcommodityandspecialtyrubbersaswellasthermoplas/celastomers,and13produc/onplantsmanufacturingplas/csandorganicsynthesisproducts,includingpolyethyleneterephthalate,glycols,alcohols,BOPP-films,expandablepolystyrene,acrylatesaswellasawiderangeofintermediatechemicals”(SpecialChem,2015).Asof31December2014,Sibur’s“basicpolymersproduc/oncapacitywas995,000tonnesperannum,synthe/crubbersproduc/oncapacitywas573,000tonnesperannumandplas/csandproductsoforganicsynthesisproduc/oncapacitywas1,008,800tonnesperannum”(SpecialChem,2015).

Infrastructure

PowerGenera/on

GTL

Petrochemicalsindustry

ReferencesS  CreonEnergy,“APG2015eventreport,”(March23,2015)

S  Kilzie,F.N.,“HowtoReducetheAPGFlaringinRussia?,”EconoMonitor(September11,2015)

S  Farina,M.F.,“FlareGasReduc/on:Recentglobaltrendsandpolicyconsidera/ons,”GEEnergy,GlobalStrategyandPlanning(Nov9,2011)

S  GovernmentofKanthy-MansiyskAutonomousOkrug–Yugra,“Crea/onofapilotclusterfortheeffec/veAPGandthelow-pressuregasusageintheKhanty-MansiyskAutonomousOkrug–Yugra,”Presenta/on,Vienna(2013)

S  Haugland,T.,“AssociatedPetroleumGasFlaringStudyforRussia,Kazakhstan,Turkmenistan,andAzerbaijan,”CarbonLimitsFinalReport(Nov2013)

S  JosefsonJ.andRotarA.,“OilandGasRegula/onintheRussianFedera/on:Overview,”Prac/calLaw(June2014)

S  KPMG,WWF,“AssociatedGasU/liza/oninRussia:IssuesandProspects,AnnualReport,”Issue4,(2012)

S  Levit,D.,“GazpromRetaliatesAgainstCompe/tors’AMemptsonitsNaturalGasExportMonopoly,”EconomicCalendar.com(April12,2016)

S  LisinE.,RogalevA.,StrielkowskiW,KomarovI.,“SustainableModerniza/onoftheRussianPowerU/li/esIndustry,”SustainabilityJournal,ISSN2071-1050(2015)

S  LoeJ.S.PandLadehaugO.,“ReducinggasflaringinRussia:Gloomyoutlookin/mesofeconomicinsecurity,”EnergyPolicy50pp507–517(2012)

S  OrderoftheRussianFedera/onN344,“AboutStandardsofthePaymentforEmissions,”(June2003)

ReferencesS  OrderoftheRussianFedera/onN1148,“AboutFeaturesofCalcula/onofthePaymentForEmissions,”(Nov2012)

S  PFCEnergy,“UsingRussia’sAssociatedGas,ReportpreparedfortheGlobalGasFlaringReduc/onPartnershipandtheWorldBank,”(December2007)

S  Roland,T.H.,“AssociatedPetroleumGasinRussia:Reasonsfornon-u/liza/on,”FridtjofNansenIns/tute(2010)

S  Rosnem,2015AnnualReport

S  Rosnem,“AssociatedGasRecoveryProjectforKomsomolskoyeOilField,”MonitoringReport(May2012).

S  Rosnem,“RosnemIncreasesAPGU/liza/onto95%atSakhalinmornemegaz,”(July2011).

S  Russnem,“APGU/liza/onandPayments,”(March3,2015)

S  Russnem,“GasProjects,”(2015)

S  SpecialChem,“SiburManufacturesSixNewLDPEGradesForPackagingIndustry,”(May29,2015)

S  TheOxfordIns/tuteforEnergyStudies,“Evolu/onofgaspipelineregula/oninRussia:Thirdpartyaccess,capacityalloca/onandtransporta/ontariffs,”(March2015)

S  TheWorldBank,“GasFlaringReduc/onsAvoid30MillionTonsofCarbonDioxideEmissionsin2010,”(2011)