A group of experts from Gazprom has finished a business trip to the Yamal-Nenets Autonomous Okrug (YaNAO).

A meeting was held today in Novy Urengoy with regard to implementing Gazprom’s projects on hydrocarbons production and transmission in the YaNAO.

The meeting assembled heads and experts from the Company’s specialized subdivisions, Gazprom dobycha Urengoy, Gazprom dobycha Yamburg, Gazprom dobycha Nadym, Gazprom transgaz Ukhta, Yamalgazinvest, Gazprom bureniye, Gazprom pererabotka, Gazprom komplektatsiya, as well as from engineering and contracting companies.

The meeting participants deliberated on the progress with the Bovanenkovo – Ukhta gas trunkline system (GTS) construction during the 2009–2010 winter period. By now, a total of over 450 kilometers of the linear part have been built, gas pumping units and building frames are being assembled at the Baidaratskaya compressor station.

It is projected that over the 2010–2011 winter period the construction operations will be intensified by 50 per cent as compared to the current period, that will require to engage extra manpower and technical resources from contracting companies, as well as to provide advanced supplies of large-diameter pipes and equipment. Pneumatic testing of several constructed sections of the Bovanenkovo – Ukhta GTS was also scheduled for this year, including the first string of the underwater crossing through the Baidarata Bay.

The meeting addressed the construction and commissioning of additional hydrocarbon production capacities in Gazprom’s fields of the Nadym-Pur-Taz region.

In particular, the construction of gas condensate wells, comprehensive gas treatment unit CGTU-2V and the Zapolyarnoye – Novy Urengoy condensate pipeline is underway as part of the Valanginian deposits pre-development in the Zapolyarnoye field. The said capacities are to be put onstream in 2010.

The meeting participants also discussed further pre-development of the Urengoy field. At the moment, extra wells in the second area of the Achimov deposits and booster compressor capacities at gas treatment units of the Valanginian deposits are under intensive construction there. In addition, this year it is planned to bring onstream the Cenomanian deposit of the Zapadno-Pestsovaya area in the Urengoy field.

The meeting was informed on the construction and hookup of extra wells in the Kharvutinskaya area of the Yamburg field in order to build up the annual output from 25 to 30 billion cubic meters.

Special attention was paid to further enhancement of Gazprom’s investment projects efficiency. A focus was placed on applying innovative approaches, introducing new technologies and technical solutions in order to minimize capital construction costs. The maximum economic effect will be derived when these technologies are applied comprehensively in both operating gas production and transmission projects and the ones that are at the engineering development stage. The meeting emphasized the importance of full and efficient utilization of all types of energy received across the entire process chain – from upstream to downstream.

Based on the meeting results, Gazprom’s specialized subdivisions, subsidiaries and contracting companies were assigned with the tasks aimed at ensuring the Company’s projects execution in the YaNAO in compliance with the adopted schedules, as well as raising their economic viability and energy efficiency.

In addition, celebrations took place today on the occasion of commissioning Comprehensive Gas Treatment Unit No.22 (the second area of the Achimov deposits) and compressor stations for associated petroleum gas (APG) utilization in the Urengoy field.

Background:

The Yamal Peninsula is a region of Gazprom’s strategic interests. Commercial development of Yamal’s fields will increase local gas production to 310–360 billion cubic meters per annum by 2030. Accessing Yamal is very important for ensuring domestic gas production growth.

In order to secure the delivery of gas from Yamal into Russia’s Unified Gas Supply System, a unique, unparalleled in Russia, new-generation gas transmission system is planned to be created before 2030. Gas from Yamal will be transported via the Yamal – Ukhta section (5–6 strings) of around 1,100 kilometers and further along the Ukhta – Gryazovets, Gryazovets – Torzhok, Gryazovets – Yaroslavl and Ukhta – Pochinki pipelines. The overall distance of Yamal’s gas transmission via the new gas pipelines will be in excess of 2,500 kilometers.

In December 2008 Gazprom commenced practical implementation of the Yamal megaproject. The Company started the operations aimed at the Bovanenkovo field development and the Bovanenkovo – Ukhta GTS construction. Commissioning of the field’s first startup complexes and the GTS are scheduled for the third quarter of 2012.

The Zapolyarnoye oil and gas condensate field is located in the southern part of the Taz District, Yamal-Nenets Autonomous Okrug. The field is considered one of the largest in Russia, as its reserves account for 3.2 trillion cubic meters. In 2004 the field was brought to its projected capacity – 100 billion cubic meters of gas per annum. Expanded pre-development of the Cenomanian deposits and bringing the Valanginian deposits into development will increase the annual gas production from the Zapolyarnoye field to 130 billion cubic meters, as well as ensure the launch of gas condensate production in the amount of up to 3 million tons per annum.

CGTU-22 of the second area of the Achimov deposits in the Urengoy field was commissioned in October 2009. The expected gas production level upon bringing the CGTU to the projected capacity will average 3.5 billion cubic meters per annum.

Bringing onstream compressor stations for associated petroleum gas (APG) utilization became another important step towards the Company’s strategy implementation oriented at raising the level of APG utilization up to 95 per cent. Operation of compressor stations makes it possible to make use of this kind of fuel and additionally provide consumers with up to 500 million cubic meters of APG per annum.