Gazprom and Yamal-Nenets Autonomous Area sign Cooperation Agreement for 2019
A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Dmitry Artyukhov, Governor of the Yamal-Nenets Autonomous Area (YaNAA), took place today at the Bovanenkovskoye field.
The parties acknowledged the strategic and long-term nature of the cooperation between the Company and the region, highlighting the importance of Gazprom’s large-scale efforts for setting up a key gas production center in the Yamal Peninsula. Today, the Company put onstream the third and final gas production facility of the Bovanenkovskoye field. Pre-development of the Kharasaveyskoye field will start in 2019.
Gazprom’s activities in the YaNAA are vital to the region’s sustainable socio-economic development. The Company’s tax payments, an essential source of budget revenue for the region, are expected to amount to some RUB 62 billion in 2018 (against RUB 55.1 billion in 2017).
The meeting reviewed the progress of gas infrastructure expansion in the region. This October, the Company completed the construction of a gas pipeline stretching to the Severnaya Niva settlement. Pre-commissioning is underway at the moment.
Efforts are in progress to expand the NGV refueling infrastructure. Currently, there are two Gazprom-owned CNG filling stations and one mobile NGV refueler in operation in the YaNAA. Construction of a new CNG filling station has been completed in Novy Urengoy. Land plots have been selected and pre-investment studies are being conducted for two more stations that will be based in Noyabrsk and Pangody.
In the course of the meeting, Alexey Miller and Dmitry Artyukhov signed the Cooperation Agreement for 2019 between Gazprom and the Government of the YaNAA.
The document covers a wide range of areas for further cooperation, such as the development of Yamal fields, expansion of regional transport and social infrastructure, and environmental protection.
Gazprom will provide YaNAA consumers with reliable supplies of gas and petroleum derivatives, making tax payments on a timely basis. The Company will continue to pursue its socially responsible policy aimed at, inter alia, supporting the indigenous minorities of the North, and will promote employment in the region. As in previous years, YaNAA students who major in oil-and-gas-related disciplines will have an opportunity to compete for Gazprom’s scholarships.
The YaNAA Government, on its part, will help resolve issues related to creating a favorable investment climate and to building and operating Gazprom’s facilities in the region.
The main document regulating the cooperation between Gazprom and the Yamal-Nenets Autonomous Area is the General Agreement. In furtherance of this document, the parties enter into cooperation agreements every year. They have also signed the Memorandum of Cooperation within the Yamal project, the Agreement on a wider use of natural gas as a vehicle fuel, and the Accord on gas infrastructure expansion.
As of January 1, 2018, the natural gas penetration rate in the YaNAA was 48.1 per cent. A regional gas supply and gas infrastructure expansion program until 2021 drafted by Gazprom is pending approval by the YaNAA Government.