Today Novosibirsk hosted a joint meeting of a Gazprom delegation and the leadership of the Russian President Envoy’s Office in the Siberian Federal Okrug (SFO). The meeting was dedicated to the issues of gas supply to and gasification of Siberian regions.

The meeting was held by Anatoly Kvashnin, Plenipotentiary Envoy of Russian President to the SFO and Valery Golubev, Deputy Chairman of the Gazprom Management Committee. Taking part in the meeting were Viktor Ilyushin, Member of the Management Committee – Head of the Department for Relations with Regional Authorities of the Russian Federation, Gazprom as well as heads of the SFO’s federal constituents and Gazprom’s subsidiaries – Mezhregiongaz, Gazprom dobycha Irkutsk, Gazprom dobycha Krasnoyarsk, Gazprom pererabotka, Gazprom transgaz Tomsk, Gazprom dobycha Kuznetsk, Gazprom VNIIGAZ, Gazprom promgaz, Gazpromregiongaz and others.

Opening the meeting, Anatoly Kvashnin pointed out that accelerated development of Siberia had been identified as a priority of the national policy. At the same time, gasification will be a key factor influencing the socio-economic advancement of Siberian regions in the coming decade. “It is necessary to elaborate programs of joint actions to be stepped by regional authorities and Gazprom based on a precise consumption forecast and considering the evolvement of the gas supply, gas processing and gas chemical industries,” stated Anatoly Kvashnin.

Addressing at the meeting, Valery Golubev emphasized that gas supply expansion in the SFO within the Eastern Gas Program and the Russian Regions Gasification Program implementation was a strategically important segment of operations for Gazprom.

Speaking of the Company’s current activities in the SFO, Valery Golubev pointed to a significant scope of geological exploration carried out in the Krasnoyarsk Krai and the Irkutsk Oblast. The Sobinskoye oil and gas condensate field in the Krasnoyarsk Krai and the Chikanskoye gas and condensate field in the Irkutsk Oblast are regarded as the most promising ones.

Besides, Gazprom considers exploitation of coalbed methane (CBM) resources as a development area for the gas industry’s resource base. The Company is going to to utilize CBM for replacing natural gas supplied to the Kemerovo Oblast from the northern Tyumen and Tomsk Oblasts.

Among Gazprom’s promising projects targeted at the SFO gas supply system development the speaker highlighted the construction of gas transmission, processing, distribution and utilization facilities in the northern Irkutsk Oblast, development of regional gas transmission systems in the Altai and Krasnoyarsk Krais, the Novosibirsk, Omsk and Tomsk Oblasts, as well as construction of gas trunklines from the Sobinskoye, Beryambinskoye and other fields in the Krasnoyarsk Krai.

Taking into account the features of Siberian regions, the Company plans not only to build gas trunklines there but also to create autonomous gas supply systems using liquefied petroleum gas (LPG) and liquefied natural gas (LNG). In this regard, the general gas supply schemes contemplate LPG deliveries to the Republics of Tyva and Khakasia. In addition, feasibility studies have been performed in respect of LPG supply to individual regions in the Krasnoyarsk and Altai Krais, the Kemerovo and Irkutsk Oblasts and the Republic of Altai.

Amid the problems that need to be addressed with the support of executive bodies special focus was placed on the identification of the balance of interest among investors and potential consumers during gas price setting, overstatement of projected gas volumes by executive bodies and the existence of numerous gas distribution companies in the SFO.

The meeting resulted in the adoption of decisions aimed at efficiently promoting gas supply and gasification in the Siberian Federal Okrug.

Background:

The Siberian Federal Okrug (SFO) comprises the Republics of Altai, Buryatia, Tyva, Khakasia; the Altai, Krasnoyarsk and Transbaikal Krais; the Irkutsk, Kemerovo, Novosibirsk, Omsk and Tomsk Oblasts. Out of the SFO’s twelve federal constituents, Gazprom signed Agreements of Cooperation with eleven constituents and Accords on Gasification with ten constituents. By now, General Gas Supply and Gasification Schemes were developed for nine regions in the SFO.

Natural gas penetration in the SFO is at 5.1 per cent including 6.3 per cent in cities and towns and 2.8 per cent in the rural area. The identical indicators throughout Russia average 63.2, 67.5 and 45.5 per cent respectively.

Between 2004 and 2009 Gazprom invested RUB 6.9 billion in the SFO’s gasification, with RUB 450 million allocated for the construction of gasification facilities in the SFO in 2010.

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) was endorsed in September 2007 pursuant to the Russian Industry and Energy Ministry’s order. Gazprom was appointed by the Russian Government as the Program execution coordinator.

In December 2009 Gazprom approved a restated Concept for the Company’s participation in the gasification of Russian regions. The Concept prescribes a gasification mechanism for population centers that are sparsely inhabited and located far from gas trunklines, including with the use of liquefied and compressed natural gas as well as liquefied petroleum gas. This is especially important for the rural area, particularly in Eastern Siberia and the Far East.

In February 2010 Gazprom launched Russia’s first CBM production at the Taldinskoye field, Kemerovo Oblast. Plateau CBM production in Kuzbass is projected at 4 billion cubic meters per annum, with an increase to 18–21 billion cubic meters per annum in the long term.