A group of Gazprom experts led by Alexander Ananenkov, Deputy Chairman of the Company's Management Committee made a business trip to the Komi Republic and the Yamal-Nenets Autonomous Okrug aiming to monitor the progress with the Yamal megaproject implementation.

During the trip the Company's staff inspected the Bovanenkovo – Ukhta gas trunkline system (GTS) construction sites and visited the Bovanenkovo field.

Summarizing the trip results, Alexander Ananenkov held working meetings in the Vorkuta city and the Bovanenkovo settlement.

Construction of the top-priority gas transmission capacities to convey the Yamal gas has entered into the final stage. Some of the Bovanenkovo – Ukhta GTS sections are being currently tested. Nowadays, 300 kilometers of the line pipe have been tested which is almost 25 per cent of the whole gas trunkline 1,200 kilometers long. The first string of the submerged crossing via the Baidarata Bay is fully ready to become operational, the second string has been built and is ready to be tested, almost 45 per cent of the third string has been welded up and trenched. Pre-commissioning work is being carried out at the Baidaratskaya main compressor station.\

To date, 112 pre-development facilities have been put onstream at the Bovanenkovo field. All production wells of the first start-up complex of the second gas play (GP 2) have been constructed and connected. Production equipment of the first start-up complex has been installed, tested and is being adjusted.

Drilling of production wells for the second start-up complex of GP 2 and the first gas play (GP 1) is in progress. A total of 181 wells have been drilled and downhole equipment has been run into 131 wells since the construction launch.

Construction of the second start-up complex of GP 2 including a 125 MW main compressor station is underway. Earthwork operations for a gas treatment unit construction have been completed, piled foundations are being built at GP 1.

“The Yamal gas will be fed into the Unified Gas Supply System on schedule,” said Alexander Ananenkov.

Following the business trip, the specialized structural units of Gazprom, its subsidiaries and contracting agencies were tasked to ensure timely commissioning of the startup complexes within the Bovanenkovo field pre-development and completion of the Bovanenkovo – Ukhta GTS construction.

Background

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

32 fields were discovered in the Yamal Peninsula and its offshore areas with aggregate A+B+C1+C2 reserves and C3 resources reaching 26.5 trillion cubic meters of gas and some 1.64 billion tons of oil and condensate. The Bovanenkovo field is the most significant one on the Yamal Peninsula as its A+B+C1+C2 gas reserves amount to 4.9 trillion cubic meters.

In December 2008 Gazprom commenced practical implementation of the Yamal megaproject. The Company started operations aimed at the Bovanenkovo field development and the Bovanenkovo – Ukhta gas trunkline system construction. Projected gas production from the Bovanenkovo field is estimated at 115 billion cubic meters per annum to be increased to 140 billion cubic meters in the long term.

Projected annual capacities of GP 2 and GP 1 are 60 and 30 billion cubic meters of gas, accordingly.

In November 2011 the Gazprom Management Committee resolved to feed the first Yamal gas into the Unified Gas Supply System ahead of schedule – in June 2012. Previously, it had been planned to launch the Yamal gas production in the third quarter of 2012.