The Russian government issued the carbon credits generated from the JI project to recover and utilize flare gas from the Yety Purovskoe Oilfield. One of Russia's largest oil companies, JSC Gazprom Neft (GN), along with JX Nippon Oil & Energy Corporation (NOE) and Mitsubishi Corporation (MC), have been jointly developing this project. This is the second time Russia has issued carbon credits on this project.
The Yety Purovskoe Oilfield is located in the Russian Federation's Yamal Nenets district. Before this JI project, the field's flare gas was simply burned off, but since August 2009 it has been recovered and re-utilized as gas and other fuel within Russia.
The Russian Government has approved this project as JI and already issued 290k tons of carbon credit in CO2 reduction from August through December 2009. This time, the Russian Government issued 750k tons of carbon credit in CO2 reduction from January through December 2010 (as the result of monitoring the amount of CO2 reduction and examination by third parties). This project will generate approximately 1,500k tons of carbon credit by December 2012.
GN, NOE and MC have been working together to develop this JI Project since their initial joint feasibility study. The partners share a commitment to this project and to promoting further businesses in the future that will reduce greenhouse gas emissions and help conserve our global environment.
*1: The JI Project is an emission reduction scheme conceived under the Kyoto Protocol. Such projects are collaborative efforts by developed countries to reduce greenhouse gasses (GHG). Emissions credits are derived through these projects through the collaborating countries’ green business activities, based on the amount of emission reductions achieved therein.
*2: Associated Petroleum Gas from oil exploration is usually burned off via a flare stack in order to avoid unexpected explosions, as it contains volatile components, such as methane, ethane and propane.
*3: The Rang Dong oil field lies offshore from southern Vietnam and is operated by one of the JX Group companies. The “Rang Dong oil field associated gas (flare gas) recovery and utilization project” was registered as a CDM in February 2006 – the world’s first CDM involving the recovery and utilization of flare gas. MC is developing more than 100 CDM/JI Projects in various countries. As of November 30th, 2011, 66 of these projects have been approved by the United Nations.