Final Investment Decision For Hungarian Section Of South Stream

January 2013, Vol. 240 No. 1

Gazprom’s Management Committee has finalized its investment decisions for the Chayandinskoye field pre-development and associated gas processing and transmission, and the Hungarian section of the South Stream gas pipeline project.

The investment lays the foundation for generating the project infrastructure, including, the Chayandinskoye oil and gas condensate field, sections from Yakutia to Vladivostok via the Khabarovska gas trunkline, as well as processing and gas chemical facilities in Belogorsk.

The Chayandinskoye field is the cornerstone of the Yakutia gas production center. Gas reserves of the Chayandinskoye oil, gas and condensate field make up 1.2 Tcm – almost twice the amount Russia produced in 2011. Gazprom will build a gas pipeline 3,200-km in length from Yakutia to Vladivostok via Khabarovsk in order to export the gas produced from the Chayandinskoye field. The route will run in parallel with the Eastern Siberia-Pacific Ocean oil trunkline. The annual throughput of the pipeline will be 61 Bcm and it is expected to fully operational in 2017.

Consideration is being given to connecting the Irkutsk and Krasnoyarsk gas production centers by pipelines that will subsequently run toward Novosibirsk and Omsk. This route will be 2,000 km and allow connection between the gas transmission system in Western Siberia and European Russia. Gazprom would then have built a unified gas supply system across the whole country, from the west to the east.

In addition, Deputy Chairman of the Gazprom Management Committee Alexander Medvedev, and Head of the Project Management Department Leonid Chugunov met with chairman and CEO of Hungary’s MVM Csaba Baji to sign a shareholders’ agreement for the South Stream joint project. The parties have approved the final investment decision for building the 229-km Hungarian section of the gas pipeline.

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