OREANDA-NEWS. February 26, 2010. Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company’s experts started their business trip to Far Eastern regions.

Previously, a group of experts had visited construction facilities of the Sobolevo – Petropavlovsk-Kamchatsky gas trunkline, as well as pre-development and drilling facilities of the Kshukskoye and Nizhne-Kvakchikskoye fields.

Today in Petropavlovsk-Kamchatsky Alexander Ananenkov held a meeting on the implementation of the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky investment project and development of the Zapadno-Kamchatsky block.

Taking part in the meeting were Sergey Pakhomov, Deputy Chairman of the Kamchatka Krai Government, heads and experts from Gazprom’s specialized subdivisions, subsidiaries and contracting companies.

Alexander Ananenkov emphasized that timely implementation of the investment project for gas supply to the Kamchatka Krai was of great socio-economic significance.

It was noted that the project was carried out in compliance with the schedule. So far, out of the required 392 kilometers of the Sobolevo – Petropavlovsk-Kamchatsky pipeline’s linear part, 364 kilometers have been constructed. Pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields is underway, production drilling has been completed. In parallel with gas supply and gasification facilities construction, the regional consumers are getting ready for gas supplies.

Execution of the investment project for gas supply to the Kamchatka Oblast is nearing completion. In this respect, the decision has been taken to reinforce the construction monitoring for the facilities that are directly responsible for gas supply within the prescribed timeframe. The task force set up by Gazprom for gas projects delivery in Kamchatka was made responsible for monitoring.

Gazprom is consecutively expanding its resource base for the purpose of meeting the Kamchatka Krai’s demand for natural gas over a long period. In 2010 the Company is going to launch geological exploration in the Zapadno-Kamchatsky block located offshore the Sea of Okhotsk. As soon as in 2011 Gazprom will drill two exploratory wells in the block that will lay the foundation for hydrocarbons deposits discovery and reserves estimation.

Based on the meeting results, Gazprom’s specialized subdivisions and subsidiaries were entrusted with the tasks aimed at timely implementation of the projects for arranging gas supply and at expansion of gas production and transportation capacities on the Kamchatka Peninsula.
Background

Gazprom’s group of experts takes regular trips to the Kamchatka Krai. The group is made up of top managers from the Company, its subsidiaries and contracting companies. The trips are primarily oriented at securing timely execution of the projects for shaping the Unified Gas Supply System in eastern Russia based on the Company’s resource base.

In September 2007 the Russian Federation Industry and Energy Ministry’s Order approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator. The new Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin gas production centers will be created in Eastern Russia.

In September 2007 the Russian Government adopted the decision prescribing Gazprom to join the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project, Gazprom is performing production drilling and pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields on the western coast of the Kamchatka Peninsula and is constructing the 392-kilometer Sobolevo – Petropavlovsk-Kamchatsky gas trunkline. It is projected to bring the gas pipeline onstream and to start gas supplies to consumers in 2010. The project also stipulates developing gas distribution networks in Petropavlovsk-Kamchatsky.

The projected natural gas production from both the Kshukskoye and Nizhne-Kvakchikskoye fields accounts for 750 million cubic meters per annum.

Gazprom invest Vostok (100 per cent subsidiary of Gazprom) is the customer of the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky investment project.

In June 2009 the Russian Federation Government resolved to grant Gazprom the subsurface license for the Zapadno-Kamchatsky block.

Gazprom and the Kamchatka Krai Government entered into the Accord on Gasification in January 2008, and into the Agreement of Cooperation in February 2009.

In 2009 the Kamchatka Krai was included into the Gasification Program for the Russian Federation regions. As part of the Program, Gazprom will allocate funds to construct a gas lateral from the automated gas distribution station of Petropavlovsk-Kamchatsky to CHPP-2.

The gasification level in the Kamchatka Krai is below 1 per cent (LNG is not supplied). Natural gas in the amount of 9 million cubic meters per annum is supplied to the settlements of Sobolevo and Krutogorovsky on the western coast of Kamchatka from the Kshukskoye field.

Regional gas production and transportation activities are performed by Kamchatgazprom (92.25 per cent state-owned, Gazprom is engaged in acquisition of this stake).