Gazprom's group of experts led by Alexander Ananenkov, Deputy Chairman of the Company's Management Committee has finished its business trip to the Yamal-Nenets Autonomous Okrug.

The experts inspected construction sites of the Bovanenkovo – Ukhta gas trunkline system (GTS), a key element of the new gas transmission system intended for gas delivery from Yamal into Russia's Unified Gas Supply System, as well as the Baidaratskaya main compressor station (CS) and some infrastructure facilities.

At the compressor station Alexander Ananenkov moderated a meeting with heads and experts from Gazprom's specialized subdivisions and Yamalgazinvest, Gazprom komplektatsiya, Gazprom transgaz Ukhta, engineering and contracting companies.

The meeting participants gave consideration to the Bovanenkovo – Ukhta GTS construction and the required equipment procurement. Over 745 kilometers of the linear part have been welded up so far. The gas pipeline's first string more than 1,200 kilometers long is to be constructed this year (with backup strings and submerged crossings).

Major equipment has been installed at the Baidaratskaya compressor station. Interior and general utilities are under construction and the station is being prepared for tests.

Construction of another eight stations was initiated: Yarynskaya, Gagaratskaya, Vorkutinskaya, Usinskaya, Itinskaya, Syninskaya, Chikshynskaya and Maloperanskaya. These CSs are to be put onstream in 2012–2013.

Based on the meeting results, Gazprom's specialized subdivisions, subsidiaries and contracting companies were tasked to ensure construction of the Bovanenkovo – Ukhta GTS according to the approved schedule.

Background:

The Yamal Peninsula is a region of Gazprom's strategic interests. Large-scale development of the Yamal fields will increase local gas production to 310–360 billion cubic meters per annum by 2030. Accessing Yamal is very important for ensuring domestic gas production growth.

In order to secure the delivery of gas from Yamal into Russia's Unified Gas Supply System, a unique, unparalleled in Russia, new-generation gas transmission system is to be created before 2030. Gas from Yamal will be transported via the Yamal – Ukhta and further along the Ukhta – Gryazovets, Gryazovets – Torzhok, Gryazovets – Yaroslavl and Ukhta – Pochinki pipelines. The overall distance of Yamal's gas transmission via the new gas pipelines will be in excess of 2,500 kilometers.

In December 2008 Gazprom commenced practical implementation of the Yamal megaproject. The Company started the operations aimed at the Bovanenkovo field development and the Bovanenkovo – Ukhta GTS construction. The first startup complexes of the field and the GTS are to be commissioned in the third quarter of 2012.