Gazprom optimizes project solutions and costs to facilitate delivery of Yakutia gas production center project

Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee held a meeting in Saratov. The meeting was dedicated to establishing the Yakutia gas production center as part of the Eastern Gas Program.

Taking part in the meeting were Vsevolod Cherepanov, Member of the Management Committee – Head of the Gas, Gas Condensate and Oil Production Department, heads and experts from Gazprom's specialized structural units, subsidiary companies, research and design organizations.

It was noted that Gazprom gave priority to efficient process and economic solutions while establishing the Yakutia gas production center. They should secure rational use of resources from Yakutia's fields and preserve the regional ecosystem.

At present, Gazprom is finishing the Investment Rationale for pre-development of the Chayandinskoye field, the basis of the Yakutia gas production center, as well as for transmission and processing of Yakutian gas. In this respect, consideration was given to the results of optimization aimed at raising the economic attractiveness of the project. The optimization was performed in such areas as project solutions, capital and operating expenses.

Like other fields of Eastern Siberia, the Chayandinskoye field has a complex geological structure and specific in-situ temperature and pressure conditions. The designed route of the Yakutia – Khabarovsk – Vladivostok gas trunkline passes, inter alia, through swamps, mountains and seismic areas. The gas trunkline construction will be launched in 2012. The climatic conditions of Yakutia, where the temperature may drop to 50 degrees below zero in the winter period, are a hindrance to the project.

The project is comprehensive by nature: the Investment Rationale will include, inter alia, the need to arrange gas supply and gasification of Yakutia's consumers, provision of gas export as well as coordination with the Sakhalin gas production center and the Sakhalin – Khabarovsk – Vladivostok gas transmission system development.

Currently, geological exploration is underway at the Chayandinskoye field. Engineering surveys are almost ready for the pre-development and gas transmission facilities, thorough consideration was given to selecting the optimal route of the gas trunkline. The logistics scheme of cargoes and personnel transportation has been defined.

The meeting gave special attention to processing of the multi-component Yakutian gas, particularly, to separation and storage of helium. They addressed the possibility of using membrane techniques for separation of helium concentrate immediately on site. In the nearest future the Company is going to carry out the pilot tests of a home-made helium separation facility at one of its fields in southern Russia. Geological structures are being explored to find the best ones for the helium concentrate storage.

Alexander Ananenkov highlighted that the Company would adhere to the approved schedule, according to which oil and gas production would be launched at the Chayandinskoye field in 2014 and 2016 accordingly. He expressed confidence that the project would meet the deadline.

The meeting underlined the fact that Gazprom had a unique track record of delivering large-scale projects. Thus, the first startup complex of the Sakhalin – Khabarovsk – Vladivostok gas transmission system had been built over the record short period of two years. In full compliance with the Russian Government assignment natural gas was delivered to the Primorsky Krai capital in September 2011.

Based on the meeting results, the specialized structural units, subsidiary companies and institutes were given tasks aimed at timely implementation of Gazprom's investment projects as part of the Yakutia gas production center establishment. The achieved results will be considered at the joint meeting of the Republic of Sakha (Yakutia) Government and Gazprom at the end of this year.