Alexey Miller: Work on Chayanda and Power of Siberia is in full swing
Alexey Miller, Chairman of the Gazprom Management Committee held a meeting in Tomsk today to consider the progress with the Company's investment projects related to gas supply to China via the eastern route.
It was pointed out that the creation of the Yakutia gas production center as well as the construction of gas transmission and processing capacities went on in compliance with the schedule.
In particular, at the Chayandinskoye field all the necessary materials and equipment have been purchased to build the facilities needed for pre-developing the oil rim. Preparations are underway for well drilling, drilling rigs are being delivered to the site. A riverside loading dock in Peleduy settlement as well as an on-site road and access roads to well clusters are under construction. Designing of the gas infrastructure at the Chayandinskoye field is almost completed.
The Power of Siberia gas trunkline construction is underway. Among other things, the gas pipeline route is being cleared, site filling is being done for the line pipe operation center base and a rotational camp in Lensk.
Joint activities are being carried out at the Power of Siberia trans-border section in cooperation with China National Petroleum Corporation. By now, the location of the underwater crossing through the Amur River has been determined and the technical requirements to the engineering surveys to perform detailed design have been approved.
The Amur Gas Processing Plant is currently under construction.
Considering the strategic importance and tight project schedules, the meeting participants paid special attention to organizing the delivery of materials and equipment. In 2014 the single logistics center in Ust-Kut secured the delivery of 135.8 thousand tons of goods for the Chayandinskoye field and the Power of Siberia gas pipeline, including 122.5 thousand tons of large-diameter pipes. This year the figure will increase several times – it is planned to deliver some 500 thousand tons of different goods.
“The work on the Chayanda and Power of Siberia projects is in full swing. All Gazprom's obligations to start gas supplies to China will be performed in full and in due time,” said Alexey Miller.
The meeting resulted in assigning tasks aimed at the ongoing implementation of projects concerning the establishment of the Yakutia gas production center and gas transmission and processing facilities.
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 Company signed the order to start the implementation of Gazprom's investment projects for gas supply to China and approved the comprehensive Action Plan.
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.
The Power of Siberia is a gas transmission system intended for natural gas delivery from the Irkutsk and Yakutia gas production centers to the Russian Far East and China. The pipeline will cross three Russian constituent entities – the Irkutsk Region, the Republic of Sakha (Yakutia) and the Amur Region – and in future will be connected to the Sakhalin – Khabarovsk – Vladivostok GTS.
Gazprom will construct the Amur Gas Processing Plant in the Amur Region to extract valuable components (helium and ethane, for instance) from natural gas.
It is planned to launch gas production from the Chayandinskoye field in late 2018. By this time, the construction will be completed at the top-priority section of the Power of Siberia GTS from the Chayandinskoye field to Blagoveshchensk (2,200 kilometers) as well as at the primary gas processing facilities.