In 2012 Gazprom will launch gas production from the Kirinskoye gas and condensate field on the Sakhalin shelf as part of the Sakhalin III project. For the first time ever natural gas will be produced by a subsea production system in Russia.

By the moment, a gathering manifold to intake gas mixture from wells has been installed at the field and a 28 kilometer pipeline running to the coast has been placed. Construction of producing wells by the new semi-submersible drilling rigs – Polyarnaya Zvezda (Polar Star) and Severnoye Siyaniye (Northern Lights) will start this year. In the second half of 2012 two wells will be ready to produce gas, including the previously built exploratory well that will be switched to the production regime. In general, six wells will be built at the field before the end of 2014. This will bring the annual gas production level to 4.2 billion cubic meters starting from 2015.

Gas will be treated at the Onshore Processing Facility being built and designed to receive gas from the Kirinskoye and, subsequently, other fields of the Sakhalin III project. The Onshore Processing Facility will be connected to the Sakhalin main compressor station of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) with a 139 kilometer gas pipeline, of which more than 100 kilometers have been constructed so far. Thus, the Kirinskoye field will serve as a gas source for consumers of Russia's Far Eastern regions.

In addition, Gazprom has completed construction of a gas disposition terminal consisting of pressure reduction and gas metering facilities to handle gas supplied from the Sakhalin I project into the Sakhalin – Khabarovsk – Vladivostok GTS. In April the terminal will be put into operation and raise the reliability of gas supply to Khabarovsk consumers, first of all.

 “Gazprom is facing the strategic task of delivering gas to Eastern Siberia and the Far East. Natural gas will develop gasification, boost industrial production and improve environment. We are going to continue our comprehensive efforts in this area,” highlighted Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee during his business trip to Khabarovsk.

Background

The state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program) was approved by the September 2007 Order of the Russian Industry and Energy Ministry. Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

In September 2011 Gazprom put into operation the first startup complex of the Sakhalin – Khabarovsk – Vladivostok GTS, a top-priority facility of the Eastern Gas Program. The first startup complex annually produces 6 billion cubic meters of gas.

At present, the Sakhalin – Khabarovsk – Vladivostok GTS is receiving the Russian state entitlement gas from the Sakhalin II project as well as gas from the Sakhalin I project. Later on, its main gas sources will be the Kirinskoye gas and condensate field, the Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks of the Sakhalin shelf.

Based on the results of the geological exploration performed by Gazprom in the Kirinsky prospect between 2009 and 2011, the Kirinskoye field gas reserves were increased from 75 billion cubic meters (C1+C2) to 137 billion cubic meters (C1). Gazprom also discovered the Yuzhno-Kirinskoye field with 564 billion cubic meters of C1+C2 gas reserves and the Mynginskoye field with 19.9 billion cubic meters of gas reserves.