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2014-09-02 18:30:00

POWER OF SIBERIA WAS STARTED

СТАРТ СИЛЫ СИБИРИ

The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Zhang Gaoli, First Vice Premier of China's State Council.

The parties addressed the enhancement of the bilateral strategic partnership in the gas sector, particularly focusing on the progress with the construction of the Power of Siberia gas trunkline designed, among other things, to supply natural gas to China via the eastern route.

Alexey Miller and Zhang Gaoli looked into the prospects for supplying Russian natural gas to China via the western route.

On the eve of the meeting, Alexey Miller held a briefing on the progress with the comprehensive Action Plan for the Company's investments projects necessary for arranging gas supplies to China via the eastern route.

The meeting participants noted that Gazprom was highly concentrated on the pre-development of the Chayandinskoye field as well as the construction of the Power of Siberia gas trunkline and the Amur Gas Processing Plant.

"Gazprom's actions are sharp and consistent within the projects in Russia's East. We comfortably meet the tight deadlines. We will keep up the pace to complete the construction of all the facilities on time," said Alexey Miller at the meeting.

-----

Background

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

On May 23, 2014 the Company signed the order to start the implementation of Gazprom's investment projects for gas supply to China and approved the comprehensive Action Plan.

The eastern route stipulates the delivery of Russian natural gas from the Irkutsk and Yakutia gas production centers to China via the Power of Siberia gas trunkline.

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 tons of liquid hydrocarbons (recoverable). At full capacity the field will annually produce up to 25 billion cubic meters of gas and no less than 1.5 million tons of oil.

In Yakutia the Company 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 Yakutia and Irkutsk gas production centers to the Russian Far East and China.

Gazprom will construct the Amur Gas Processing Plant in the Amur Region to extract valuable components (helium and ethane, for instance) from natural gas.

The gas deposit pre-development in the Chayandinskoye field and the Amur Gas Processing Plant construction will start in 2015.

It is planned to launch gas production from the Chayandinskoye field in late 2018. By this time, the construction will be completed of the top-priority section of the Power of Siberia GTS from the Chayandinskoye field to Blagoveshchensk and primary gas processing capacities. This will make it possible to initiate direct gas supplies to China in 2019 according to the obligations set out in the signed contract.

The western route stipulates gas supplies from West Siberian fields to China.

gazprom.com

Tags: ГАЗ, ГАЗПРОМ, GAZPROM, GAS, SIBERIA

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