Gazprom-AR2014

28
Business Development Prospects
Priority projects in gas transportation, underground storage, hydrocarbon processing, and LNG
production
The contract signed in May 2014 provides for a phased construction of the Power of Siberia pipeline
to supply gas to China and to Russian consumers via the “eastern” route. Pursuant to the
Framework Agreement signed between OAO Gazprom and CNPC in November 2014, supplies of
the gas produced at Western Siberian fields to China via the “western” route in amounts of up to
30 bcm per year with a length of about 2,600 km.
With a view to further enhance the capacities of the Sakhalin — Khabarovsk — Vladivostok
pipeline and secure natural gas supplies from the Sakhalin gas production centre to Russian and
foreign consumers, ToR for design document adjustment for the Sakhalin — Khabarovsk — Vladivostok
Pipeline project were approved.
Efforts are underway in the Amur Region to build gas processing and helium plants that will
be supplied with gas feedstock from Yakutsk and Irkutsk gas production centres. Location: Svobodnensky
District, Amur Region. Phase 1 is expected to be commissioned at the same time as
gas supplies to China via the Power of Siberia pipeline are started.
One of the key projects to strengthen Gazprom’s positions in the Asia-Pacific LNG markets is
Vladivostok-LNG project that provides for an LNG plant construction with a capacity of 10 mm
tonnes per year and an enhancement option of up to 15 mm tonnes, near Vladivostok, Primorye
Territory. The plant’s two phases will be supplied with gas feedstock from the Sakhalin gas production
centre. Gazprom Group plans to sell LNG from this project under long-term contracts to
largest Asia-Pacific markets: Japan, South Korea, China, Taiwan, and others.
In addition, Sakhalin Energy, Gazprom’s affiliated company, is performing a feasibility study
as part of Sakhalin II project to assess the feasibility and desirability of LNG production ramp-up
in Sakhalin, and considers potential construction of a new process train similar to the two existing
trains, as well as an additional LNG storage and port facilities.
Underground gas storage system expansion in Russia and abroad
Re-equipment, upgrade and enhancement of current storage facilities and construction of new
UGSFs is one of Gazprom’s strategic priorities.
Long-term development goals for the underground gas storage system in the Russian
Federation are set in the General Scheme for the Development of the Gas Industry through 2030,
developed by the Ministry of Energy of the Russian Federation, and aim to increase the daily
withdrawal capacity and operating gas reserves.
The plans for an expanded UGSF network provide for the construction of new UGSFs in
Russia and the CIS countries by 2025, bringing the network’s aggregate peak daily withdrawal
capacity up to 1 bcm. This will help cut gas transportation costs by 10–15% and the cost of gas
deliveries to consumers by 5–10%.
To achieve the above goal OAO Gazprom plans to:
— sustain the current UGSF performance through upgrade and re-equipment of the existing
UGSFs;
— enhance capacities of the existing UGSFs (Kanchurinskoye, Kasymovskoye, Nevskoye,
Punginskoye, Stepnovskoye, and Karashurskoye);
— build and expand peak-shaving gas storage (Volgogradskoye, Kaliningradskoye, Novomoskovskoye);
— build new UGSFs in high consumption regions: Arbuzovskoye in the Volga Federal District,
Bednodemynovskoye in the Central Federal District, Shatrovskoye in the Ural Federal District,
and explore opportunities for UGSFs construction in the North-Western, Siberian and Far
Eastern Federal Districts.
OAO Gazprom Annual Report 2014