The Gazprom Headquarters hosted a meeting dedicated to the current status of and prospects for the project on coalbed methane (CBM) pilot production and commercial utilization. The meeting was held by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee.

Taking part in the meeting were Sergey Shatirov, Member of the Federation Council of the Federal Assembly of the Russian Federation, First Deputy Chairman of the Industrial Policy Committee of the Federation Council, Head of the Representative Office of the Kemerovo Oblast Administration under the Russian Federation Government; Valentin Mazikin, First Deputy Governor of the Kemerovo Oblast; Vasily Podyuk, Member of the Management Committee – Head of the Gas, Gas Condensate and Oil Production Department of Gazprom, top managers from Gazprom’s specialized subdivisions and subsidiaries – Mezhregiongaz, Gazprom promgaz and Gazprom dobycha Kuznetsk.

It was noted at the meeting that Gazprom had done much work, namely, the Company had arranged CBM pilot production from coal deposits of the Taldinskoye field for the first time in Russia’s history.

At present, top priority is given to arranging comprehensive CBM utilization as a motor fuel and gas delivery to the Unified Gas Supply System and to heat and power generating facilities. The meeting pointed out the need to prepare a project for pilot commercial supply of natural gas to consumers over a triennial period (the Project) taking into account the potential build-up in CBM production and utilization.

Gazprom’s specialized subdivisions and subsidiary companies were entrusted with the appropriate tasks including with regard to the Project elaboration and implementation.

Background:

The Taldinskoye CBM field is located in the central part of the Erunakovsky geological-economic area of the Kuznetsky basin within the Novokuznetsky and Prokopyevsky Districts of the Kemerovo Oblast 65 kilometers to the north of the city of Novokuznetsk. Ñ1+Ñ2 gas reserves approved in May 2009 by the Russian Natural Resources and Ecology Ministry account for 45.8 billion cubic meters.

In 2005 Gazprom established a test site for the CBM production technology development at the Taldinskoye field in Kuzbass.

In 2009 seven exploratory wells with the depth ranging from 600 to 1,000 meters were drilled in the eastern sector of the Taldinskoye CBM field. Gazprom dobycha Kuznetsk, a fully-owned subsidiary of Gazprom, is the license owner.