Alexey Miller: the Power of Siberia first joint will be welded this August
Alexey Miller, Chairman of the Gazprom Management Committee held a meeting on the progress with the comprehensive action plan covering the Company's investment projects needed to ensure gas supply to China.
Developing gas resources and shaping gas transmission system in Eastern Russia
It was noted that Gazprom speeded up the construction of necessary gas production, transmission and processing facilities almost immediately after the contract with China had been signed.
In particular, the development of design documents for gas production facilities and for the GTS first section (from the Chayandinskoye field to Lensk) is nearing completion. FEED for the GTS section from Lensk to Svobodny is underway as well as preparations to launch the design phase of the section ending up in Blagoveshchensk (borders China). The design of the Amur Gas Processing Plant is also in progress.
Special attention was given to pre-construction operations. An integrated logistics center will be set up in Ust-Kut this summer to receive and deliver the equipment and materials necessary for the field pre-development. It is planned to start the delivery of large-diameter pipes for Power of Siberia construction already in July, and in winter the manpower and resources of construction companies will be relocated to the most hard-to-access areas of future construction sites.
At the end of the meeting it was entrusted to timely execute the investment projects on supplying natural gas to China.
“We have a particular action plan. All the responsibilities have been distributed and strict deadlines have been set. Our objective is to weld the Power of Siberia first joint already this August,” Alexey Miller stated during the meeting.
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.
On May 23, 2014 the order was signed to start the implementation of Gazprom's investment projects for gas supply to China and the relevant action plan was approved.
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). At full capacity the field will annually produce up to 25 billion cubic meters of gas and no less than 1.5 million tons of oil.
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 the Amur Gas Processing Plant in the Amur Region to extract valuable components (helium and ethane, for instance) from natural gas.
The gas deposit pre-development in the Chayandinskoye field and the Amur Gas Processing Plant construction will start 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 the Chayandinskoye field to Blagoveshchensk and primary gas processing capacities will be put onstream. This will make it possible to initiate direct gas supplies to China in 2019 according to the obligations set out in the signed contract.