Gazprom aims to produce 12% more gas in 2021
Russia's Gazprom aims to produce 12% more natural gas in 2021 than last year, the company's deputy chairman of the management committee, Vitaly Markelov, said in a presentation on May 27.
The state gas producer now plans to produce 506.5bn m3 of gas this year, up from an estimate in April of 496.9bn m3. It supplied 453.5bn m3 of in 2020.
Gazprom's exports slumped last year, due to the impact of the coronavirus pandemic, mild weather, increased LNG imports into Europe and high levels of gas in storage on the continent. But with demand now high and storage levels unusually low, its sales have rebounded this year, with supplies to countries outside the former Soviet Union up 26.7% between January 1 and May 15.
Markelov added that production at the Bovanenkovo gas field, one of Russia's largest, was expected to top 100bn m3 in 2021, after reaching 99bn m3 last year. Gazprom has said before that the field on the Yamal Peninsula could produce as much as 140bn m3/year of gas at full capacity.
Gazprom also confirmed that the Ust-Luga gas processing and LNG project remains on schedule, despite its recent decision to terminate the engineering contract for the complex issued to Russian firm Nipigaz. Germany's Linde is expected to come on board as a replacement. Despite the change, Gazprom held a groundbreaking ceremony for the project on May 21. It is due to start production in 2023-24, handling up to 18bn m3/year of gas.
"We do not see any problems in terms of the impact of the change of contractor on the progress of work," Markelov said. "We control all aspects that are connected with this project."
Gazprom added that it had contracted almost all the helium due to be produced at the Amur gas processing plant (GPP) for sale. The facility will treat helium-rich east Siberian gas that is on route to China via the Power of Siberia. Gazprom expects to start commissioning the facility in this quarter. It should reach its full 42bn m3/yr capacity in early 2025.
The Amur GPP will produce around 60mn m3/yr of helium. "Almost all of it has been contracted," Markelov said: "the demand for it in the world is quite good."