On December 21 2020, Gazprom Marketing & Trading (GM&T) and Central Geological Company (Cen Geo) signed an agreement for the joint implementation of CO2 emission reduction projects by eliminating associate petroleum gas (APG) flaring at three oil and gas fields in the Russian Federation.
Through this venture, Cen Geo is planning to build gas utilisation and commercialisation infrastructure at three of its oil and gas production sites – allowing for the utilisation of gas that otherwise would be flared. As a result, up to 50mln m3 of natural gas will be commercially used, stopping up to 100,000 tons of CO2 being released into the atmosphere.
GM&T will provide its project management expertise to certify these projects for their emission reductions and monetise the resulting credits through its European customer base. Through this landmark deal, GM&T will also channel carbon financing to the Russian Federation, helping to substantially reduce APG flaring and resulting CO2 emissions.
Of the deal, our Head of Environmental Projects, Julia Elmgren, says “this is a great example of how carbon financing can bring about new, additional emission reductions, and we at GM&T are very proud to be partnering with Cen Geo to bring down emissions in the Russian oil and gas sector”.
CEO of Cen Geo, Dmitry Kamyshev, also added “this deal enables us to contribute to a low-carbon economic development in Russia and reduce our carbon footprint. Investing in environmentally friendly projects gives us access to European carbon financing to help support our goals in reducing impact on the climate and deliver additional value to our shareholders”.
Cen Geo was established in 2013 with the participation of the Russian company Leader-Group and other partners to invest and work in the oil and gas sector in Russia and the CIS. Their Russian based group of companies together with a management team have over 30 years of experience and are engaged in exploration, development of fields, workover of wells and production of hydrocarbons in Western Siberia of the Russian Federation.
GM&T re-established its Environmental Products desk in 2020. Through its now 7-member strong team, the desk develops emission reduction projects globally and provides services and products to support customers with their emission exposures and reduction goals.
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