16-07-2013

Topsøe signs agreement to improve associated petroleum gas utilization in Western Siberia

Haldor Topsøe A/S recently signed a ‘declaration of intent’ agreement with representatives from the local government of Khanty-Mansi Autonomous Okrug, a region located in western Siberia which is part of the Russian Federation.

The signing took place during an official visit to Denmark that included a visit to Haldor Topsøe’s corporate headquarters in Lyngby and marks the beginning of collaboration aimed at improving utilization of associated petroleum gas (APG), a by-product available in large quantities in the region due to extensive oil production.

Flaring of APG represents a key political focus area in Russia due to its environmental impact and the fact that it is wasteful from an economic point-of-view. As part of the agreement Haldor Topsøe and the Khanty-Mansi district will begin working together on a number of concrete initiatives aimed at improving the utilization of APG in the area. This includes an evaluation of Haldor Topsøe’s TIGAS™ (Topsøe Improved Gasoline Synthesis) technology and its applicability in specific oil-fields.

TIGAS™ is a fully proven technology that makes it possible to produce high-quality, high-value gasoline in an efficient, low-cost way using APG as the feedstock

Russia has some of the world’s largest oil and gas reserves and more than 50% of the country’s oil is produced in the Khanty-Mansi region. It is estimated that a large amount of APG is currently flared on site by oil producers in the region. Consequently political attention is mounting to find ways of of solving the problem, both at a national level in Russia and regionally in Khanty-Mansi.

“The agreement represents an interesting opportunity for us, because we believe TIGAS™ can make a big difference that is mutually beneficial for both parties not to mention the environment and the positive impact an improved APG utilization could have for the local communities in Khanty-Mansy in terms of economic progress and job creation for example,” says Kim Grøn Knudsen, Group Vice President for Haldor Topsøe’s, New Business Unit and continues:

“By transforming APG into synthetic gasoline using TIGAS™, oil companies gain access to a valuable commodity. Synthetic gasoline is a competitive alternative to refinery gasoline. Moreover, in contrast to DME, methanol and ethanol, synthetic gasoline meets existing gasoline standards and can be used as a ‘drop-in’ fuel. This means production can take place on-site in close proximity to oil production making transportation to a refinery located far away from the site unnecessary. It also means that the existing petrochemical infrastructure can be used for distribution and car engines can use it as fuel without modification.”

Haldor Topsøe has a long track record of doing business in Russia that goes back to the early 60’s. The company currently employs 60 engineers working out of the main office which is located in Moscow. Topsøe also has strong ties to the scientific community in Russia in the field of catalysis.