NIS Starts Programme for Efficient Use of Gas Resources

July 3, 2013

In line with its long-term programme for efficient use of gas resources, on July 3, NIS officially started up its first co-generation module, assembled at the Sirakovo gathering and dispatch station (GDS) in the Veliko Gradište municipality. NIS CEO, Kirill Kravchenko, and the minister of energy, development and environmental protection, Zorana Mihajlović, attended the event. The programme for efficient use of gas resources includes three segments. The first one – co-generation project, aimed at utilising dissolved gas. The programme also includes the construction of an amine unit for treatment of natural gas in the LPG Production Unit in Elemir, as well as injection of CO2 separated by the amine unit to wells, for the purpose of increasing hydrocarbon extraction. This programme will enable NIS to start the co-generation of electric power and thermal energy from own resources, and also to improve the quality of natural gas exploited at company's wells. Total investment in the programme for efficient use of gas resources totals above 6 billion dinars. A sum of 3.027 billion dinars will be invested in the amine unit, and the remaining funds in construction of co-generation units. By the end of 2014, this programme will enable NIS to use 90% of its dissolved gas resources, which amounts to around 90 million cubic metres. The objective of the project is to fully and efficiently use available resources, in this case – dissolved gas, which was up until now sent to the flare. The project will simultaneously mitigate environmental impact by reducing the emissions occurring when the gas is sent to the flare. "The complex economic situation in which the company does business forces us to find new directions in increasing cost efficiency. The priority is introduction of new technologies. One of the directions is to achieve maximum energy efficiency, including maximum use of own resources, such as gas. I must mention that active use of co-generators is a global trend in oil and gas companies. By starting its programme for efficient use of gas resources, NIS proved once again that it applies state-of-the-art technologies" - said NIS Chief Executive, Kirill Kravchenko. About the co-generation project: The design capacity of Sirakovo GDS is 0.85 MW. The annual production of electric power will be 6.12 million KWh. Around 1.2 million euro was invested in this project. Main contractor for the project is the Czech-based TENERGO. The co-generation module operates by converting dissolved gas into thermal and electric energy. The produced thermal energy will be used for well infrastructure requirements, while the electric power will be sold to external consumers. The savings in procurement of energy products could reach 40%. By the end of 2013, the dissolved gas utilisation programme will include assembly of another 7 co-generators at company facilities. The total capacity will reach 7.65 MWt and the scope of investment will be above 10 million euro. By the end of 2014, the total co-generation capacity should reach 25 MWt. The project will enable NIS to increase energy efficiency of its Upstream Block by reducing costs associated with energy products and providing stable energy supply to wells and GDS. NIS will also create an opportunity to enter the local electric power market.