Gazprom is finally bringing northwestern Siberia gas field on stream. Production at the massive Bovanenkovo gas field located on the Yamal Peninsula will be ramped up gradually to a level of 115 million m3 a year in 2017, an amount that corresponds to 23 % of Gazprom’s current annual gas production.
In the long run, Gazprom hopes to increase Bovanenkovo production to 140 million m3 a year. A gas pipeline running from Bovanenkovo to Ukhta on the European side of Russia is under construction. From there the gas will be transmitted via Russia’s growing pipeline grid into the Nord Stream pipeline, which runs under the Gulf of Finland to Germany.
Observers are skeptical whether there is enough demand for the increasing supply. Gazprom had to cut production 6% in January-September on reduced exports to Europe and increased domestic competition from independent producers.