Gazprom begins start-up operations at third gas production facility of Bovanenkovskoye field

The Gazprom Management Committee took note of the information about the progress of major investment projects.

The Company continues to implement the extensive Eastern Gas Program and to build facilities associated with supplying gas to domestic consumers and to China. In particular, 119 producing gas wells were drilled at the Chayandinskoye field, the linchpin of the Yakutia gas production center. Also underway is the installation of the gas field’s core process equipment.

A total of 2,010 kilometers of pipes are already welded and laid for the Power of Siberia gas pipeline between Yakutia and the Russian-Chinese border. This translates into 93 per cent of the pipeline length. Power of Siberia’s two-string submerged crossing under the Amur River is 78 per cent complete, with pipe pulling currently in progress in the second tunnel. The Atamanskaya compressor station adjacent to the border is under construction as well.

Construction of top-priority facilities for the first start-up complex of the Amur Gas Processing Plant (GPP), a key link in the gas supplies chain via Power of Siberia, is running at full speed. Heavy-duty equipment is being delivered to the GPP.

Before the end of this year, Gazprom also intends to launch the project for the expansion of the Sakhalin – Khabarovsk – Vladivostok gas pipeline within the section from Komsomolsk-on-Amur to Khabarovsk. Design documentation is fully ready.

In the west of the country, the Company actively pursues strategic projects aimed at enhancing Russia’s Unified Gas Supply System (UGSS).

A third and final gas production facility of the Bovanenkovskoye field is coming onstream in the Yamal Peninsula, where one of the domestic industry’s most important gas production centers is based. The Company commenced the start-up of the core process equipment, with commissioning scheduled to take place in 2018. In addition, it was decided to start the full-scale pre-development of Kharasaveyskoye, another large field in Yamal, in 2019.

Simultaneously with the ramping up of production capacities, Gazprom makes efforts to expand the northern gas transmission corridor. A 970-kilometer linear part of the Ukhta – Torzhok 2 gas pipeline will be completed this year. In order to increase the throughput of the operating Bovanenkovo – Ukhta 2 gas pipeline, start-up and installation operations are being carried out at four compressor shops with a total capacity of 371 MW. The project for the UGSS extension in northwestern Russia is going forward.

New high-tech gas pipelines in the northern gas transmission corridor will make it possible to deliver additional amounts of gas to Russian and foreign consumers.

On September 5, offshore pipelaying of the Nord Stream 2 gas pipeline commenced in the exclusive economic zone of Finland. Preliminary pipelaying is also being performed in German territorial waters. Complete sets of construction permits were received from Germany, Finland, Sweden, and Russia.

The TurkStream project is running on schedule. At the moment, the second string of the gas pipeline stretching to Turkey is being laid, and a receiving terminal is under construction in the coastal zone near the Kiyikoy settlement. Landfall facilities near the Russian town of Anapa are completed, and the start-up and landscaping operations will be finished in 2018.

Both gas pipelines will be commissioned before the end of 2019.

While developing Company-owned natural gas liquefaction capacities, Gazprom continues to build a liquefied natural gas (LNG) production, storage and shipment complex near the Portovaya compressor station. Specifically, a gas pipeline branch is already completed, and work is in progress on the core process facilities of the complex, the onshore LNG storage tank, and the offshore shipment terminal.

The issue concerning the progress of the Company’s major investment projects will be submitted for review by the Gazprom Board of Directors.