OREANDA-NEWS. September 15, 2011. The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Yegor Borisov, President of the Republic of Sakha (Yakutia).

The parties discussed the issues of cooperation within Gazprom's investment projects aimed at establishing the Yakutia gas production center provided for in the Eastern Gas Program. It was noted that the Investment Rationale for the Chayandinskoye field pre-development as well as natural gas transmission and processing was nearing completion. In particular, the document will define the Yakutia – Khabarovsk – Vladivostok gas pipeline route that will be the best option from the economic and environmental standpoints. The gas pipeline construction will start in 2012.
Background

Gazprom and the Republic of Sakha (Yakutia) signed the Agreement of Cooperation in July 2007 and the Accord on Gasification – in June 2008. In December 2010 the parties entered into the Partnership Agreement for socioeconomic development driven by the Eastern Gas Program.

Natural gas penetration in the Republic of Sakha (Yakutia) averages 25 per cent including 29.6 per cent in cities and towns and 15.3 per cent in the rural area. The identical figures throughout Russia average 63.1, 69.8 and 46.7 per cent respectively.

Gazprom doesn't supply natural gas to the Republic.

Pursuant to the Eastern Gas Program approved by the 2007 Order of the Russian Federation Industry and Energy Ministry, new gas production centers will be established in Eastern Russia and among them the Yakutia gas production center.

The Chayandinskoye oil, gas and condensate field with the subsurface license held by Gazprom is the cornerstone for the Yakutia gas production center. The field is located in the Lensk District, Republic of Sakha (Yakutia). The field's C1+C2 reserves make up 1.3 trillion cubic meters of gas and 79.1 million tons of recoverable oil and condensate reserves. At present, geological exploration is underway at the field. It is projected to bring the Chayandinskoye field oil rim into development in 2014 and the gas deposits – in 2016.