At the Gazprom Headquarters, Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee has chaired a meeting on construction design for facilities on the Yamal Peninsula. Attending the meeting were heads and specialists of the Gazprom core business units and subsidiaries.

Opening the meeting, Alexander Ananenkov noted that the Bovanenkovo field was a key project to develop the Yamal Peninsula.

The participants examined the regulatory base providing design, pipe production and equipment, facilities construction for the Bovanenkovo field and Bovanenkovo – Ukhta gas main system. The parties specified that technical features for joint gas production and transmission facilities required improving the existing regulatory documents and developing new ones.

The participants also discussed opportunities of Russian enterprises providing pipe production and deliveries, shut-off and control valves and gas pumping units for the Yamal development.

Special attention was paid to issues relevant to construction of underway line of the Bovanenkovo – Ukhta gas main system via the Baydaratskaya Bay (Kara Sea).

At the end of the meeting, the parties made decisions to complete preparation of regulatory documentation, design for core system units, construction and production of equipment for the Yamal Peninsula field development and gas transport using domestically made technologies, materials and equipment.

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In January 2002, the Gazprom Management Committee had identified the Yamal Peninsula as a region of Gazprom’s strategic interest. Commercial development of Yamal fields will help build up local gas production to 250 bcm/y. Accessing Yamal is of principled significance for securing gas extraction growth.

Yamal has seen the discovery of 11 gas and 15 oil and gas condensate fields with the total recoverable gas, condensate and oil reserves of 10.4 tcm, 228.3 mln t and 291.8 mln t, respectively. The combined reserves of Yamal’s largest fields, namely the Bovanenkovo, Kharasavey and Novoportovskoye fields operated by Nadymgazprom (a wholly owned subsidiary of Gazprom), account for 5.9 tcm of gas, 100.2 mln t of condensate and 227 mln t of oil.

The Cenomanian-Aptian deposits of the Bovanenkovo field are a paramount development target on Yamal.

The Substantiations of investment in supporting and gas transmission facilities of the Yamal Peninsula based Bovanenkovo field were developed by VNIPIgazdobycha. The Substantiations cover the capacity commissioning sequence, gas extraction dynamics, general transmission route and gas main construction scheme.

115 bcm/y of projected gas production from Bovanenkovo is anticipated to increase to 140 bcm/y in the long-term. In order to deliver the extracted gas to the UGTS, it is necessary to build a 2,451-km-long gas transmission network including a new 1,100-km-long transmission corridor from Bovanenkovo to Ukhta.

The Substantiations have received all government and expert approvals required by the existing the Russian Federation legislation. All expert reports point to the expediency of executing the development project for the Bovanenkovo field and construction project for a gas transmission network from Yamal.

In October 2006, the Gazprom Management Committee reviewed the progress with the development of the Substantiations of investment in supporting and gas transmission facilities of the Yamal Peninsula based Bovanenkovo field and ordered to initiate the investment stage of the Bovanenkovo field development and gas main network construction.

Gazprom’s core business units were tasked with bringing onstream in the 3rdQ of 2011 first 15 bcm/y upstream facilities for the Cenomanian-Aptian deposits of the Bovanenkovo field as well as a Bovanenkovo – Ukhta gas main system.

Nadymgazprom will be a customer for the Bovanenkovo oil and gas condensate field development and which will exploit the Bovanenkovo. Yamalgazinvest will be a customer for the gas transmission system construction. Severgazprom will be an exploitative company.