Utilization of associated petroleum gas

APG utilization and achieving a reduction in its flaring are priority areas of our environmental policy. Significant investments have been made to resolve this issue as part of the Group’s Efficient APG Use Program.

In 2017, over RUB 15 billion was allocated to the construction and renovation of APG treatment, transport, and refining facilities and for generating electricity and heat in Russia (2016: RUB 24.2 billion). In 2017, the program’s most capital-intensive measures were in their final stages.

In 2017, the commissioning of 17 facilities was performed as a part of the Group’s Efficient APG Use Program for 2017–2019, including the renovation of the Usinsk Gas Processing Plant and the commissioning of the Yarega power generating center in the Komi Republic.

Total APG (hydrocarbon) flaring,  thousand cubic meters
2015 2016 2017
Total for LUKOIL Group, including: 957,838 952,473 574,867
Russian subsidiaries of LUKOIL Group 900,161 937,555 555,327
Foreign LUKOIL Group subsidiaries 57,678 14,918 19,540

The Group’s Efficient APG Use Program for 2018-2020 was approved in 2017. A number of measures are planned under this program, including the refurbishment of the Kokuy Gas Compressor Station and the construction of a power generation center at the Chashkinskoye field (LUKOIL-PERM), the technical retrofitting of the compressor station at the Yu. Korchagin field (LUKOIL-Nizhnevolzhskneft), and the construction of a multiphase pump station (MPS) at the A. Alabushin field and thermal power plants at the Usinskoye field (LUKOIL-Komi).

The program covers a three-year period, and will be updated annually. The effectiveness of the measures taken is assessed through internal and external audits. Plans are revised based on the results of analyzing performance targets achieved.

APG utilization rate, %
2015 2016 2017
Total for LUKOIL Group, including: 92.0 92.1 95.4
Russian subsidiaries of LUKOIL Group 91.9 91.7 95.2
Foreign LUKOIL Group subsidiaries 93.5 98.1 97.6