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Investment Projects for Gas Supply to China Launched

Source: www.gulfoilandgas.com 5/23/2014, Location: Asia

Alexey Miller, Chairman of the Gazprom Management Committee signed an order to start the implementation of Gazprom's investment projects for gas supply to China. Starting from today, all the specialized structural units and subsidiary companies are involved in the projects for creating gas production, transmission and processing capacities to supply gas to China. All these investment projects rely on natural gas from the Yakutia gas production center.

In line with the approved comprehensive Action Plan, Gazprom will start pre-developing the gas deposit of the Chayandinskoye field, constructing the first string of the Power of Siberia gas transmission system (GTS) and creating a gas processing and helium complex in the Amur Region in 2015.

It is planned to launch gas production from the Chayandinskoye field in late 2018. By this time, the top-priority section of the Power of Siberia GTS from Chayanda to Blagoveshchensk and primary gas processing capacities will be put onstream. This will make it possible to initiate direct gas supplies to China in line with the obligations provided for by the contract.

The comprehensive plan also stipulates test oil production from the Chayandinskoye field in 2014 and pilot production – in 2015. The oil supplies into the Eastern Siberia – Pacific Ocean oil trunkline are slated for late 2017.

“The whole potential of Gazprom is engaged today. Our aim is the East. Our aim is China. Let's set to work!” said Alexey Miller.

On May 21, 2014 Gazprom and China National Petroleum Corporation signed the contract for the Russian pipeline gas supply to China. The 30-year contract stipulates gas supplies in the amount of 38 billion cubic meters of gas per year.

The Chayandinskoye oil, gas and condensate field is the cornerstone for the Yakutia gas production center. It is a unique field in terms of reserves (C1+C2): some 1.45 trillion cubic meters of gas and some 93 million tons of liquid hydrocarbons (recoverable). In the plateau period up to 25 billion cubic meters of gas and no less than 1.5 million tons of oil will be annually produced from the field. In Yakutia the Company also holds subsurface use licenses for the Sobolokh-Nedzhelinskoye, Verkhnevilyuchanskoye, Tas-Yuryakhskoye and Srednetyungskoye fields.

The Power of Siberia is a gas transmission system intended for gas delivery from the Irkutsk and Yakutia gas production centers to the Russian Far East and China.

Gazprom will construct helium and gas processing plants in the Amur Region to extract valuable components (helium and ethane, for instance) from gas.

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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