Gazprom Says China’s Gas Exports Continue Despite Amur Plant Fire
MOSCOW, Oct. 8 (Reuters) – Gazprom (GAZP.MM) said on Friday that Russian pipeline gas exports to China were continuing despite a fire that shut down operations at the gas processing plant in MOSCOW. ‘Amur in the Russian Far East.
The plant plays an important role in Russian gas exports to China, which has been hit by power shortages that have led to power rationing across the country. Read more
Gazprom said in a statement that it continues to export gas to China through the Power of Siberia pipeline in accordance with daily nominations.
A spokesperson for the plant said in an email that operations had been suspended but only one of the plant’s processing lines caught fire, while others were unaffected. The blaze was extinguished at 1:05 p.m. (04:05 GMT), the plant later said.
The local attorney general’s office said the fire broke out after the plant’s equipment was decompressed. He said no one was injured and an investigation into the incident had been opened.
Videos posted on social media showed a fire at an industrial facility, identified as the Amur factory, with workers in orange overalls and helmets filming the incident on their phones.
The Amur Gas Processing Plant (GPP), designed to process 42 billion cubic meters (bcm) of gas per year, was launched in June to help supply gas to China through the Power of Siberia. Read more
Commenting on the incident, Moscow-based brokerage firm Sova Capital wrote: “The fire at Amour’s GPP could mean a drop in exports to China, but if the fire is limited to one unit, exports could not to be affected.
“We expect Gazprom to export more than the 8.5 billion m3 forecast to China this year, with our forecast at 9.5 billion m3,” he wrote.
A fire at another Gazprom plant in northern Russia in August resulted in reduced production of gas condensate and cuts in gas supplies to Europe.
In addition to processing natural gas, the d’Amour plant should eventually produce up to 60 million cubic meters of helium per year, 1 million tonnes of propane, around 500,000 tonnes of butane and 2.5 million tonnes of ethane.
Full capacity is expected to be reached in 2025, making it one of the largest gas processing plants in the world.
Reporting by Vladimir Soldatkin and Anton Kolodyazhnyy; Editing by David Goodman and Edmund Blair
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