Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company’s experts started their business trip to Far Eastern regions.

Earlier, a group of experts visited the construction facilities of the Sobolevo – Petropavlovsk-Kamchatsky gas trunkline, assessed the construction progress with the comprehensive gas treatment unit (CGTU-2) and the automated gas distribution station (AGDS) of Petropavlovsk-Kamchatsky, as well as reviewed the conversion of the city’s combined heat and power plant (CHPP-2) to natural gas. The experts also examined pre-development facilities of the Kshukskoye and Nizhne-Kvakchikskoye fields.

Alexander Ananenkov held a meting today in Petropavlovsk-Kamchatsky dedicated to the implementation of the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky investment project.

Taking part in the meeting were Members of the Gazprom Management Committee: Yaroslav Golko, Head of the Investment and Construction Department, and Vsevolod Cherepanov, Head of the Gas, Gas Condensate and Oil Production Department; as well as heads and experts from Gazprom’s specialized structural units and contracting companies.

Opening the meeting, Alexander Ananenkov emphasized that execution of the project for gas supply to the Kamchatka Oblast would improve the living standards of the local population, boost the socio-economic development and raise the investment attractiveness of the region.

The meeting participants addressed the construction deadlines for the gas production, transmission and distribution facilities in the Kamchatka Oblast.

So far, the linear part of the Sobolevo – Petropavlovsk-Kamchatsky gas pipeline has been fully constructed and is being tested. Underway is pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields, construction of CGTU-2, AGDS of Petropavlovsk-Kamchatsky, and a gas lateral from AGDS to CHPP-2.

Based on the meeting results, Gazprom’s specialized subdivisions and subsidiaries were tasked to step up the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

Background:

Gazprom’s expert groups regularly visit the Kamchatka Krai. The groups are comprised of the Gazprom management, representatives from the Company’s specialized structural units, subsidiaries and contracting companies. The visits are primarily aimed at ensuring timely implementation of the projects for the Unified Gas Supply System creation in eastern Russia on the basis of the Company’s resources.

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Government as the Program execution coordinator. New gas production centers will be  created in eastern Russia: the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

In September 2007 the Russian Government made a decision to involve Gazprom in the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project, Gazprom carries out production drilling and pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields on the western coast of the Kamchatka Peninsula, as well as construction of the Sobolevo – Petropavlovsk-Kamchatsky gas trunkline with the length of 392 kilometers. It is planned to commission the trunkline and start gas supply to consumers in 2010.

The Kshukskoye and Nizhne-Kvakchikskoye fields are supposed to  annually yield 750 million cubic meters of gas in total.

Gazprom invest Vostok (a wholly owned subsidiary of Gazprom) is the customer of the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky investment project.

The Gasification Accord was entered into between Gazprom and the Kamchatka Krai Government in January 2008, the Cooperation Agreement – in February 2009.

Since 2009 the Kamchatka Krai has been involved in the Russian Regions Gasification Program. As part of the Program, the Gazprom-sponsored construction of a gas lateral from AGDS of Petropavlovsk-Kamchatsky to CHPP-2 will be completed in 2010. In its turn, the Kamchatka Krai Government will simultaneously arrange CHPP-2 conversion to natural gas.

The Kamchatka Krai gasification level is below 1 per cent (liquefied natural gas is not supplied). Natural gas is delivered to the settlements of Sobolevo and Krutogorovsky on the western coast of Kamchatka from the Kshukskoye field in the amount of 9 million cubic meters per annum.

Kamchatgazprom (in which Gazprom is seeking to acquire the 92.25 per cent stake held by the Federal Government) is currently dealing with gas production and transportation in the region.