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Interfax.com  |  Interfax news  |  Gazprom to start supplying Chayanda gas to China...

News headlines

May 23, 2014 20:34

Gazprom to start supplying Chayanda gas to China in 2019 (Part 2)

MOSCOW. May 23 (Interfax) - Gazprom (MOEX: GAZP) will start supplying gas from the Chayanda field in Yakutia to China in 2019 and oil via the Eastern Siberia-Pacific Ocean (ESPO) pipeline in 2017.

The Russian gas giant said in a press release that its CEO, Alexei Miller, had given instructions to start the implementation of Gazprom's investment projects for gas supply to China.

"Starting from today, all the specialized structural units and subsidiary companies are involved in the projects for creating gas production, transmission and processing capacities to supply gas to China. All these investment projects rely on natural gas from the Yakutia gas production center," Gazprom said.

"In line with the approved comprehensive Action Plan, Gazprom will start pre-developing the gas deposit of the Chayandinskoye [Chayanda] field, constructing the first string of the Power of Siberia gas transmission system (GTS) and creating a gas processing and helium complex in the Amur Region in 2015," it said.

"It is planned to launch gas production from the Chayandinskoye field in late 2018. By this time, the top-priority section of the Power of Siberia GTS from Chayanda to Blagoveshchensk and primary gas processing capacities will be put onstream. This will make it possible to initiate direct gas supplies to China in line with the obligations provided for by the contract."

"The comprehensive plan also stipulates test oil production from the Chayandinskoye field in 2014 and pilot production - in 2015. The oil supplies into the Eastern Siberia - Pacific Ocean oil trunkline are slated for late 2017."

"The whole potential of Gazprom is engaged today. Our aim is the East. Our aim is China. Let's set to work!" Miller was quoted as saying.

On May 21, 2014 Gazprom and China National Petroleum Corporation signed the contract for the Russian pipeline gas supply to China. The 30-year contract stipulates gas supplies in the amount of 38 billion cubic meters of gas per year.

The Chayandinskoye oil, gas and condensate field is the cornerstone for the Yakutia gas production center. It is a unique field in terms of reserves (C1+C2): some 1.45 trillion cubic meters of gas and some 93 million tonnes of liquid hydrocarbons (recoverable). In the plateau period up to 25 billion cubic meters of gas and no less than 1.5 million tonnes of oil will be annually produced from the field.

In Yakutia, Gazprom also holds subsurface use licenses for the Sobolokh-Nedzhelinskoye, Verkhnevilyuchanskoye, Tas-Yuryakhskoye and Srednetyungskoye fields.

The Power of Siberia is a gas transmission system intended for gas delivery from the Irkutsk and Yakutia gas production centers to the Russian Far East and China.

Gazprom will construct helium and gas processing plants in the Amur Region to extract valuable components (helium and ethane, for instance) from gas.

Pr ak

(Our editorial staff can be reached at eng.editors@interfax.ru)

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