INDUSTRY AND ENERGY OF THE REPUBLIC OF KOMI

Oil Mining

In the Republic of Komi there are 152 hydrocarbon fields listed on the state balance; oil and gas is produced in 87 fields where 65 ones are in commercial operation and 22 - in trial or pilot operation. Also, the companies in Komi develop 12 fields in Nenets Autonomous Okrug.

The bulk of oil output in the Republic falls at OJSC LUKOIL-Komi (67.9% of the total output) and OJSC RN-Northern Oil (10.5%).

The oil production centre of the Republic is Usinsk District: in 2008 its share of the total oil output was 63% (8.5 mln. tons); the second largest share fell at Pechora District - 16.3% (2.2 mln. tons), the share of Sosnogorsk District being 1.2 mln. tons (8.9%).

The most of the fields developed are qualified as average or small ones in terms of reserves. About 70% of oil reserves are hard to recover.

Further increase of oil recovery can be possible by applying radically new technologies of development of extra-heavy oil in the Yarega and Usinsk fields.

 

Petroleum Refining

OJSC LUKOIL-Ukhta Oil Refinery is a key chain in oil refinery. The company specializes in production of automobile benzene, diesel fuel, aviation kerosene, fuel oil, bitumen, vacuum gas oil and other products.

The capacity of the existing facilities for primary oil refining is 4.5 mln tons per annum. Oil depth of processing was 82.5% in 2008.

 

Gas Industry

The base recoverable reserves of free gas are on the books of Gasprom Pererabotka, Ltd. (a subdivision of OJSC Gasprom) that does gas production and refining.

82.6% of the entire gas produced in the Republic is in Vuktyl Gas Condensate Field. Currently, the field is to be converted into a gas holder control unit.

The gas industrial centre of the Republic is located in Vuktyl District where 86.5% of the total regional gas production volume was produced in 2008. Sosnogorsk Gas Refinery (a subdivision of Gasprom Pererabotka, Ltd.) is the only has refining company that does complex refining of natural gas and unstable condensate in the Northwestern Federal District of Russia.

In 2003 Sosnogorsk Gas Refinery became the first ever company of the Republic that certified its products under the international quality standards system; the company products are exported to many countries of the globe.

 

Coal Mining

The Pechora Coal Basin is located in the northeastern extreme of the European Part of Russia in the Republic of Komi and in Nenets AO, Arkhangelsk Oblast. The greater part of the basin is located further north than the Polar Circle. The area of the basin is 100,000 sq km.

Coal is mined in 7 collieries of the Pechora Coal Basin that are termed to be promising ones, in a single cross-section.  The aggregate capacity is 15.9 mln tons of output p.a., including 11.7 mln tons being coke-convertible. 

Coal is mined underground at collieries that are part of OJSC Vorkutaugol, OJSC Colliery Group Intaugol and OJSC Vorgashor-2 Colliery; also, coal is produced by open-cut mining in an open pit of JV Yun-Jaga Coal Pit.

Virtually, all the coal mined in the basin is treated (prepared) at coal preparation plants and units.

 

Ore Mining Complex

The Republic's ore mining sector is represented by mining companies, such as: OJSC Timan Bauxite (bauxite mining in Knyazh-Pogost District); CJSC Khoilin Mining and Concentration Complex (barite ore mining and concentrate production in Vorkuta Industrial District; Inta Branch of OJSC Komi Manganese (manganese ore mining in Inta Industrial District; the field is temporarily removed from operation; CJSC Kozhim Prospecting and Exploration Company (gangue quartz mining and concentrate production in Inta Industrial District).

All customers of the ore mining output are located beyond the Republic. 

 

Timber Industrial Complex

The Republic's timber industrial sector includes logging, timber milling and pulp and paper companies.

Timber harvesting is concentrated in the basins of the Vychegda, Sysola and Mezen rivers. The major wood harvesting areas of the Republic are in Udora, Koigorodsk, Ust-Kulom, Kortkeros, Prilusk, Syktyvdinsk and Sysolsk Districts.

The stock of timber resources in the Republic of Komi exceeds 2.8 bln cu m. The stock of softwood is 2.365 bln cu m, the stock of hardwood - 0.491 bln cu m.

The total approved periodic yield in the Republic is 27.8 mln cu m per annum; the actual figure of harvesting is 7.5 mln cu m. The periodic yield in use is 27.5% and one in forestry enterprises located away from timber mills being up to 10%.

To be able to use the timber stock forest users must make commercial lease agreements for 49 years or timberland sales contracts made based on the results of timber auctions. The forest users (leaseholders) have been given 131 woodlots with the total area of 5.6 mln ha, the annual outturn in the leased woodlots being over 11.6 mln cu m p.a.

 

Timber milling

The timber milling sector of the Republic is represented by sawmill production (7.5% of the total sectoral industrial output), plywood, fiberboard, chipboard and MDF boards (21.3%), wooden building structures including millwork (0.3%) and wooden containers (0.2%).

 The basic line of plywood and board production is assimilation of manufacture of better quality and competitive product lines: medium density boards (MDF), chip boards and glued lamination scale boards, large-size scale boards and softboards.

The capacity utilization at major timber mills amounts to 100%, except for in sawmilling (85.5%)

 

Pulp and paper

OJSC Mondi Syktyvkar, a leading pulp and paper business, is one of the major pulp and paper producers in Russia.

The total capacity of the company is over 844,000 tons of paper and cardboard products per annum. The integrated works has its own wood preparation shop and a pulp mill that produces 556,000 tons of pulp per annum, CHP and treatment facilities.

The basic products include office and offset paper, newsprint, and top-liner and Kraft-liner linerboard.

 

Machine-building

The machine-building sector of the Republic of Komi incorporates over 200 companies of different forms of ownership (basically, small businesses and industrial operations at non-commercial companies).

In 2006-2007 a new department of pavilion module manufacture was put in operation at Syktyvkar Mechanical Works, Limited..

Currently, modernization of production and assimilation of new competitive products are under way at most of the machine-building companies.

 

Power

The power system of the Republic is a unified, virtually, closed territorial complex that interconnects to Kotlas Power Centre of Arkhangelsk Power Grid on the power transmission lines of Urdoma-Mikun (220kW), Zheshart-Yarensk (110kW) and to Kirov Power Grid on the power lines of Letka-Murashy (110kW).

The power grid of the Republic consists of 5 power centres: in Vorkuta, Inta, Pechora, Ukhta (Central Power Transmission Centre) and Southern PTC that are connected to a backbone single-circuit transmission line with the capacity of 220kW that extends for over 1,000 km. As of 1 January 2009, the total length of the power grid is 1,610 km of backbone power lines and 20,719 km of distribution power lines.

In 2008 power generation amounted to 9.5 bln kWh.

Over 70% of electricity is derived from natural gas. Also, coal, fuel oil, diesel oil or wood waste are used as a fuel.

As of 1 January 2009, there were 1,124 power plants in the Republic; the figure is 8% bigger than in early 2008. A growth of the number of power plants was due to the increased number of mobile diesel power plants in use. Out of the total number of power plants, there are 58 public utility power stations, 554 industrial power stations, 205 power stations in transport companies, 60 - in building companies, 33 - in agricultural or forestry organizations, and 214 are the property of other business entities.

Alongside with centralized power supply, the power grid provides district heat supply distributed from power plants and large boiler houses.

 

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