Gazprom Boosting Gas Industry in Eastern Russia

The Gazprom Management Committee addressed the Company's large-scale efforts aimed at implementing the Eastern Gas Program.

It was noted that the gas industry growth in Russia's East was strategically important for the socioeconomic development of eastern regions.

The Company is active in expanding its resource base in eastern Russia as well as putting in place its gas production, transmission and processing capacities. A long-term balance plan for Gazprom's natural gas from the Irkutsk and Yakutia gas production centers was drawn up to ensure the execution of the contract for pipeline gas supply to China signed in May 2014 with due consideration of gas supply to Russian consumers via the Power of Siberia gas pipeline.

The Chayandinskoye field pre-development goes on within the Yakutia gas center formation. This year nine exploratory wells were constructed there; it is planned to round up the geological exploration activities and estimate the reserves within the next two years.

Exploratory wells are under construction in the Kovyktinskoye field.

Considering the integrated nature of the Power of Siberia project, much attention is given to synchronizing the commissioning of gas production and transmission facilities with that of gas processing facilities. At present, engineering surveys are underway for designing the Amur Gas Processing Plant (GPP) within the large-scale activity aimed at creating a gas processing and gas chemistry cluster in the Amur Region.

The Sakhalin gas production center development is in progress: work is moving on at the Kirinskoye and Yuzhno-Kirinskoye fields (Sakhalin III project).

The meeting looked into the Vladivostok LNG project. It was pointed out that Gazprom was thrashing out an alternative option of gas supply to China – that is, via the gas pipeline.

Special focus was laid on the state incentives for the projects in eastern Russia with the account of harsh natural conditions and remoteness of gas production and transmission facilities. It is necessary, among other things, for improving the efficiency of pipeline gas supply to eastern regions.

In addition, the meeting pointed out the necessity of further improving tax and customs & tariff regulation as well as pricing mechanisms to encourage gas producers.

The relevant structural units were assigned specific tasks to go on with the Eastern Gas Program.