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Gazprom Neft plans to invest $400 mn in CCS project in Russia

Russian oil major Gazprom Neft plans to invest ca. USD 400 mn (30bn rubles) in a carbon capture and storage (CCS) project in the Russian Orenburg region, the company’s CEO Alexander Dyukov announced. 

The first stage of the project provides for the annual capture of 1 mln tonnes of CO2, which will be stored in underground oil reservoirs. The volume of underground reservoirs at oil fields in the Orenburg region allows storing up to 50 mln tonnes of CO2, according to Alexander Dyukov.

Currently, there are no operating CCS projects in Russia, however, several companies (Metalloinvest, Severstal, EVRAZ) have announced plans to launch them in the future. 

According to Dyukov, such projects require support from the government. “Projects in Norway, the Netherlands, the U.S. are on the stage like ours, and we see an active role of the government to stimulate these projects. And all understand that decarbonization of the economy is impossible without carbon capture and storage,” he noted.  

Gazprom Neft is operating a CCS project in Serbia, where it owns a regional NIS oil company. The project has an annual capacity of 100k tonnes of CO2. 

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