Pipe supply starts for Power of Siberia GTS construction

The pipes are currently stocked at the temporary storage; they will be used for constructing the GTS section from the Chayandinskoye field to Lensk. All in all, in 2014 it is planned to deliver over 120 thousand tons of pipe products.

The domestically manufactured pipes are delivered to Ust-Kut (Irkutsk Region) via the railway and further to Lensk by barge. In order to arrange and manage the goods traffic, a united logistic center was set up in Ust-Kut. Between 2014 and 2018 it is planned to deliver over 1,700 tons of pipes.

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.

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 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.

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