The scientific and practical conference on Low Pressure Gas Utilisation results

The All-Russia scientific and practical conference on “Low Pressure Natural Gas Integrated Utilization for Sustainable Social Development of Gas Producing Regions” scientific and practical conference sponsored by Nadymgazprom was held in the city of Nadym from March 12 to March 15, 2003.

The conference participants included Pyotr Latishev, the Representative Plenipotentiary of the President of the Russian Federation in the Urals Federal District, Alexander Ananenkov, Deputy Chairman, Gazprom Management Committee, Viktor Kudryavii, Minister of Energy of the Russian Federation, Yuri Neyelov, Governor, Yamalo Nenetsk Autonomous Region, Vladimir Kovalchuk, the city of Nadym Mayor, and representatives of UES Russia, industry and scientific research institutions of the Russian Federation.

Alexander Ananenkov, Deputy Chairman, Gazprom Management Committee, was the keynote speaker at the conference. He mentioned that Nadym – Pur – Tazovskii gas producing region deposits are in the final stage of development. The region is the main one in Russia in terms of natural gas production. This particular development stage is characterized by a high level of extraction impediments and rising production costs. According to A. Ananenkov, this is an essential deposits development process.

A. Ananenkov also mentioned that production equipment at Nadym – Pur-Tazovskii gas producing region was in operation for at least 15 to 30 years. Repairs and service time extension is necessary to keep the equipment in operation.

The resolution of the above mentioned problems lies in substantial investments and new technologies development. New financial approaches are needed in terms of price structuring, taxation and social consequences evaluation.

The conference participants arrived at a conclusion that it was necessary to formulate well-grounded proposals on the criteria identification of attributing hydrocarbon resources remaining at the final stage of deposits development to low pressure natural gas reserves, and submit these proposals to the Government of the Russian Federation. It is also imperative to formulate proposals on low pressure natural gas pricing, and government support measures for companies involved in the development of deposits conforming to these criteria.

Information Directorate, OAO Gazprom