Gazprom discusses creation of Yakutia gas production center
Gazprom actively implementing Eastern Gas Program

Yakutsk hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Yegor Borisov, President of the Republic of Sakha (Yakutia).
The parties discussed the progress with the Agreement of Cooperation and prospects for future partnership in light of the final investment decision on the Chayandinskoye field adopted by Gazprom as well as construction of gas transmission and processing facilities. 

The meeting noted that Gazprom had significantly increased the investments channeled to the Republic's economy: between 2007 and 2011 the Company allocated RUB 5.1 billion for creating the Yakutia gas production center, and RUB 4.2 billion – during ten months of the current year only.

Expansion of Gazprom's business in Yakutia is a strong driver for socioeconomic development of the region. In particular, construction of gas transmission facilities in the region will provide for its further gasification. The first section of the powerful and unified gas transmission system designated for the Yakutia and Irkutsk gas production centers, namely the Yakutia – Khabarovsk – Vladivostok gas pipeline, will run via southern regions of Yakutia. The gas pipeline route has been chosen so as to convey gas to the maximum possible number of settlements.
In addition, the Yakutia gas production center will create new jobs for the locals. Some 3,000 experts will have to be employed to operate the gas pipeline and to work at the Gazprom production facilities in the Republic. At present, the Company provides the training for experts, also from Yakutia, at Russian professional educational centers and encourages development of education programs.

The parties emphasized that it was necessary to intensify efforts aimed at creating favorable conditions for the gas sector development in Yakutia. The meeting noted that Gazprom and the Government of the Republic would speed up preparation of the state support projects, including elaboration of the regional legislative acts on tax benefits.

Alongside with expanding the presence in the Yakutia economy, Gazprom pays particular attention to development of the social sector. As part of the Gazprom for Children program, a versatile complex for children is being built in Yakutsk. Construction of an art and culture center in Yakutsk may become another example of joint efforts with the Republic.

Source: Gazprom, PennEnergy - 2012-12-11

Gazprom actively implementing Eastern Gas Program

The Gazprom Management Committee took notice of the information regarding the work being done by the Company as part of the Eastern Gas Program. The meeting highlighted that Gazprom had already started creating the Yakutia gas production center in a pro-active manner. In October the final investment decision was adopted and project documents started to be elaborated for pre-development of the Chayandinskoye field – the cornerstone of the Yakutia gas production center, construction of the Yakutia – Khabarovsk – Vladivostok gas trunkline as well as for gas processing facilities in Belogorsk. Gazprom is planning to launch production of the Chayanda gas in 2017.

The Company keeps expanding its resource base in Eastern Russia. Geological exploration is underway in all key regions of the Eastern Gas Program. For instance, preparations for exploratory wells construction in the Yuzhno-Kirinskoye field, as well as engineering and environmental survey in the Vostochno-Odoptinsky and Ayashsky blocks of the Sakhalin III project took place on the Sakhalin shelf in 2012.

Pre-development of the Kirinskoye field is in progress. In 2012 construction of the onshore processing facility (OPF) and the subsea production system went on and construction of production wells began. Besides, the linear part of the gas pipeline connecting the Kirinskoye field OPF to the Sakhalin main compressor station of the Sakhalin – Khabarovsk – Vladivostok gas transmission system was completed.

The Company is going to complete the principal stage of the Kshukskoye and Nizhne-Kvakchikskoye gas condensate fields pre-development this year as part of the project for arranging gas supply to the Kamchatka Krai. This year, seven exploratory wells were built at the Chayandinskoye field in Yakutia, the projects for the follow-up exploration of the Sobolokh-Nedzhelinskoye, Verkhnevilyuchanskoye, Tas-Yuryakhskoye and Srednetyungskoye fields are being prepared. In the Irkutsk Region preparations went on for the follow-up exploration of the Kovyktinskoye field and C1+C2 gas reserves were increased at the adjacent Chikanskoye field – from 98.2 to 120.7 billion cubic meters. The Ilbokichskoye gas and condensate field was discovered in the Krasnoyarsk Territory.

In parallel with development of gas production and transmission capacities, Gazprom is active in gasifying Far Eastern regions. Between 2008 and 2011 the Company allocated more than RUB 14.1 billion for general gas supply and gasification schemes elaboration, design and survey operations and construction of 12 inter-settlement gas pipelines in the Kamchatka, Primorye, Khabarovsk and Sakhalin Regions. In 2012 Gazprom is going to invest around RUB 2.5 billion in the regions to carry out design and survey and build seven gas laterals, seven gas distribution stations and 26 inter-settlement gas pipelines that will be completed in 2013.

A vast resource base in Eastern Russia, sustained formation of large gas production centers and building of necessary transmission corridors will make it possible to establish there a new Russian gas export center geared to the Asian-Pacific region. An LNG plant planned to be constructed in Vladivostok is Gazprom's high-priority project for which the investment rationale will be completed before year end. The launch of the Chayandinskoye field pre-development and the project for building the Yakutia – Khabarovsk – Vladivostok gas trunkline made it possible to start negotiating the eastern route with China in addition to the western route.

In Eastern Siberia and the Far East Gazprom is engaged in complex large-scale projects that fundamentally influence the socioeconomic development of eastern regions. Timely measures of state support will speed up the Eastern Gas Program execution. In this context, the Management Committee tasked Gazprom's specialized structural units to continue cooperating with state authorities on creating the tax, price and other conditions enabling for efficient execution of eastern projects. The meeting also considered some issues of the current operating activity as part of the Sakhalin II project.

Source: Gazprom / PennEnergy, December 14, 2012

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