Eastern Gas Program

Events

Establishing a full-fledged gas industry in eastern Russia

 

New gas production centers and a unified gas transmission system are rapidly evolving in eastern Russia. Together, they will secure long-term gas supplies to consumers in Eastern Siberia and the Far East and help establish a new major route to export Russian gas to Asia-Pacific.

Gazprom Group’s gas business development

Figures and facts

According to initial estimates, there are 52.4 trillion cubic meters of onshore gas and 14.9 trillion cubic meters of offshore gas in eastern Russia.

The commercial A+B+C1+C2 gas reserves within Gazprom’s licensed areas in Eastern Siberia and the Far East exceed 5 trillion cubic meters.

There are five fields in commercial production.

The length of gas pipelines in operation is around 3,000 kilometers.

The state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program), was adopted in September 2007 pursuant to the Order by the Russian Ministry of Industry and Energy. Gazprom was appointed by the Government of the Russian Federation as the Program coordinator.

Project scope

Sakhalin gas production center

The presence of vast proven reserves offshore Sakhalin allowed Gazprom to create a gas production center in the area and start delivering gas to consumers in Russia’s Far East and abroad. Gazprom runs two large-scale projects in the region, namely Sakhalin II (Piltun-Astokhskoye and Lunskoye fields) and Sakhalin III (Kirinskoye, Yuzhno-Kirinskoye and Mynginskoye fields within the Kirinsky block, as well as the Ayashsky and Vostochno-Odoptinsky blocks).

Onshore processing facility at Kirinskoye field

Onshore processing facility at Kirinskoye field

Yakutia gas production center

Yakutia’s largest field – Chayandinskoye – with around 1.4 trillion cubic meters of gas serves as the basis for the gas production center. Gazprom also holds development licenses for such local fields as Sobolokh-Nedzhelinskoye, Verkhnevilyuchanskoye, Tas-Yuryakhskoye, and Srednetyungskoye.

Chayandinskoye field

Irkutsk gas production center

The gas production center is based on the Kovyktinskoye field (over 2.5 trillion cubic meters of gas), the largest one in eastern Russia. The Company has discovered another field, Chikanskoye, next to the Kovyktinskoye field.

Gas treatment unit No. 102 at Kovyktinskoye field

Gas treatment unit No. 102 at Kovyktinskoye field

Kamchatka gas production center

As part of the project aimed at providing the Kamchatka Territory with gas supplies, Gazprom develops the Kshukskoye and Nizhne-Kvakchikskoye fields on the west coast of the Kamchatka Peninsula and delivers gas to consumers in Petropavlovsk-Kamchatsky and other population centers.

Krasnoyarsk gas production center

Gazprom holds development licenses for a number of blocks in the Krasnoyarsk Territory and plans to create a gas production center in the region.

Gas transmission system

In the eastern regions, the development of gas transmission capacities progresses simultaneously with the development of the gas production sector. In the future it is planned to integrate the gas transmission system evolving in eastern Russia into the national Unified Gas Supply System with the purpose of creating the world’s largest unified technological complex.

In eastern Russia, Gazprom has built the Sakhalin – Khabarovsk – Vladivostok gas transmission system that traverses the Sakhalin Region and the Khabarovsk and Primorye Territories. At present, the Company constructs the Power of Siberia gas pipeline running through the Irkutsk Region, the Republic of Sakha (Yakutia), and the Amur Region. Eventually, Sakhalin – Khabarovsk – Vladivostok and Power of Siberia may be joined together near Khabarovsk.

Developing gas resources and shaping gas transmission system in Eastern Russia

The Sobolevo – Petropavlovsk-Kamchatsky gas trunkline, which was built by Gazprom, laid the foundation for developing the gas supply system in the Kamchatka Territory.

Gas processing

The integrated development of the gas production and processing industries in eastern Russia is focused on using multi-component gas from the eastern fields as efficiently as possible.

Russia’s first LNG plant, which was built in Sakhalin as part of the Sakhalin II project, produces LNG for export purposes.

Gazprom’s Amur gas processing plant (GPP) will be the biggest such plant in Russia. The plant will process gas from the Yakutia and Irkutsk gas production centers, extracting valuable components for the petrochemical and other industries. The products are intended for the domestic and foreign markets.

Development

Across eastern Russia, new gas production centers have been built in the Sakhalin Region and the Kamchatka Territory, the Yakutia gas production center is actively evolving, with the Irkutsk and Krasnoyarsk gas production centers next in line

Production projects

In 2009, the Sakhalin II project started producing natural gas.

Gazprom set out to start commercial gas production from the Kshukskoye field in 2010 and from the Nizhne-Kvakchikskoye field in the Kamchatka Territory in 2011, with the annual design capacity totaling 750 million cubic meters of gas.

In 2014, the Company put into commercial operation the Kirinskoye field of the Sakhalin III project. Moreover, Gazprom discovered new fields offshore Sakhalin, such as Yuzhno-Kirinskoye, Mynginskoye, and a field within the Yuzhno-Lunskaya formation.

In 2015, Gazprom started the pre-development of gas deposits in the Chayandinskoye field (Yakutia). Production will start simultaneously with the launch of the Power of Siberia gas trunkline. The trial oil production from the field began in 2014.

The Kovyktinskoye field in the Irkutsk Region is currently in pilot production.

Transmission projects

In 2010, the 392-kilometer Sobolevo – Petropavlovsk-Kamchatsky gas pipeline came onstream, with the annual capacity of up to 750 million cubic meters of gas.

In 2011, Gazprom brought into operation the first start-up complex of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS). The total length of the GTS exceeds 1,800 kilometers. When it reaches its full capacity, the system will be able to convey around 30 billion cubic meters of the Sakhalin gas.

In 2014, the Company launched the construction of the Power of Siberia gas pipeline with the length of around 3,000 kilometers and the annual export capacity of 38 billion cubic kilometers of gas.

Processing projects

The LNG plant of the Sakhalin II project entered service in February 2009. The annual design capacity of its two production trains totals 9.6 million tons of LNG. It is planned to ramp up the plant’s capacity through the construction of the third train.

The construction of the Amur GPP began in October 2015. The stage-by-stage commissioning of the GPP trains will be synchronized with the development of Gazprom’s production capacities in Yakutia and the Irkutsk Region.

Visual rendering of Amur gas processing plant

Technologies

When implementing projects in severe natural and climatic conditions of eastern Russia, Gazprom applies advanced and highly reliable engineering solutions, including lightly manned and energy saving technologies. This approach enables the Company to tap the hydrocarbon potential of Eastern Siberia and the Far East

In order to develop the Kirinskoye field offshore Sakhalin, Gazprom created a subsea production system – the first one in the history of Russia’s gas industry. As of today, Kirinskoye is the only field on the Russian shelf where production is carried out without rigs or any other above-water structures.

Subsea production system at Kirinskoye field

The Chayandinskoye field in Yakutia will be developed using lightly manned technologies, which will ensure equipment monitoring and integrated management of facilities in an automatic mode, as well as renewables-based stand-alone power systems. For the first time in Russia, the development project provides for the large-scale on-site application of the membrane technology for helium separation from natural gas.

The Company constructed the Sobolevo – Petropavlovsk-Kamchatsky gas pipeline taking into account high seismic activity in Kamchatka. The pipeline safety is ensured through, among other things, special engineering solutions. For instance, a number of pillars in water crossings are not firmly connected to the pipeline, which allows the pillars to shift from side to side in case of seismic activity, thereby maintaining the integrity of the pipeline.

Sobolevo – Petropavlovsk-Kamchatsky gas trunkline

Sobolevo – Petropavlovsk-Kamchatsky gas trunkline

As part of the Sakhalin – Khabarovsk – Vladivostok GTS project, an inter-settlement gas pipeline was constructed in the Primorye Territory to connect the gas distribution station located in Vladivostok to the Russky Island, with a pipeline branch to Vladivostok’s CHPP-2. The most technically challenging section of the gas pipeline – a two-string passage across the Eastern Bosphorus Strait – was built using the directional drilling method. At the time of construction, Gazprom set a precedent in Russia by building a passage of significant length (2.8 kilometers each string) and a considerable mine tunnel diameter (762 millimeters) in the extremely difficult geological environment (rocks).

Gas distribution station No. 1 in Vladivostok

Gas distribution station No. 1 in Vladivostok

Gazprom constructs the Power of Siberia gas pipeline, using, inter alia, domestically produced steel pipes with internal flow coating. This technology makes gas transmission less energy-consuming thanks to a reduction in pipe roughness and therefore in friction. External insulation coating is made of innovative domestic nanocomposite materials, which ensures high corrosion resistance of the gas pipeline. Pipes with enhanced deformation properties and special engineering solutions are used in the areas of active tectonic faults.

Social and economic significance

The basic principle of the Eastern Gas Program is to prioritize gas supplies to Russian consumers

Despite rich natural gas reserves, gas grid coverage averages 12.6 per cent in the Far Eastern Federal District and 6.8 per cent in the Siberian Federal District, while the countrywide level stands at 66.2 per cent. The General Gas Supply and Gasification Schemes developed for the regions of Eastern Siberia and the Far East are based on a comprehensive approach to providing gas grid connections. The Schemes also envisage wide use of LNG as an energy option for stand-alone systems in addition to pipeline natural gas.

Small-scale LNG plant

Small-scale LNG plant

In order to reach off-grid households, Gazprom builds gas branches, gas distribution stations, and inter-settlement gas pipelines. Regional governments are responsible for the construction of intra-settlement gas grids and the preparedness for gas supplies. Thanks to Gazprom’s efforts, pipeline gas reached Vladivostok, Petropavlovsk-Kamchatsky, Yuzhno-Sakhalinsk, and other population centers in eastern Russia.

The availability of natural gas drives social and economic development and environmental improvement in the regions.