Premium Engineering, the exclusive representative of Red Mountain Energy, has signed a contract with UK KER Holding to design an Associated Petroleum Gas Processing Unit (AGTPU) in Chechnya.

The equipment will be installed at a gas distribution station of the Khayan-Kort oil field in the Grozny district.

The unit’s output per annum will be 185.3 million cubic metres, which is enough to serve the needs of 75,000 families.

Equipment deliveries are to start in March 2010, while Premium Engineering will use technical innovations supplied by Red Mountain Energy Corporation, according to the agreement between the two companies.

The project will be carried out by the commission of the Ministry of Industry and Energy of the Chechen Republic. The project is aimed at solving the problem of flaring associated gas, improving the environment and organising high quality procession of an associated petroleum gas, according to the objectives set by the Chechen administration.