Gazprom Launches Massive Yamal-Nenets Field

Gazprom will add 4.9 trillion cubic metres of gas to its production capacity following the launch of the Bovanenkovo field in the Yamal-Nenets region of Russia yesterday.

To begin with, Russian President Vladimir Putin said of the field, production will amount to 115 billion cubic metres of gas a year. However, this will rise in time, increasing to 140 billion cubic metres per year in "the near future", he said.

President Putin welcomed the launch of the field yesterday, praising the work of those involved and the amount of gas that will be produced from the field.

"The total reserves in Yamal will allow us to produce 340-360 billion cubic meters of gas by 2030," he said at the launch via video-conference from Moscow. "This is an enormous amount, and it will guarantee for decades ahead that we will be able to fulfil our obligations not only to our partners abroad, but also to supply gas on a large-scale to Russian cities, towns and villages."

Besides the launch of the field, yesterday also saw Gazprom deepen its ties with the local government. Following the Bovanenkovo field launch, the company said in a statement, CEO of Gazprom Alexey Miller met with Governor of the Yamal-Nenets Autonomous Area, Dmitry Kobylkin, to sign a Cooperation Agreement for the region.

Under the terms of this agreement, the region and Gazprom will continue to cooperate on the development of fields onshore and offshore the Yamal Penisula as well as expanding the existing gas transmission system there. 

Also covered under the agreement is: the promotion of gas as a motor fuel; environmental management; social policy and the setting up scholarships for students to gain a qualification that would be relevant to Gazprom. The deal also lays out the exact obligations on Gazprom in relation to the supply of gas and hydrocarbons to the region.

Besides motor fuel, tax benefits are also covered under the agreement, with the Yamal-Nenets local authority agreeing to promote the tax benefits available to those who are seeking to explore and develop hydrocarbons in the region.