Gazprom ups production in Yamal, aims at Chinese market

The company increases production capacity at its Bovanenkovo field to 90 billion cubic meters. The Arctic gas might soon be sold to China, the company says.


With the production capacity increase, Gazprom is getting close to its planned project capacity peak of 115 billion cubic meters. The Bovanenkovo is with its 4,9 trillion cubic meters reserves the biggest field in the gas-rich peninsula.

The Bovanenkovo gas was originally planned sold in Western markets. However, a key part of it is now re-oriented towards China. Gazprom is expected to sign a second major gas contract with CNPC in 2015, and the Yamal gas will constitute an important element in that deal. The agreement will include 30 billion cubic meters of gas shipped to China through the socalled western route, a pipeline connection entering China from the Russian Altay region, the company informs.

Gazprom in 2013 produced a total of 22,3 billion cubic meters of gas at Bovanenkovo, a volume which increased to 38,4 billion in 2014, Vedomosti reports. All that gas was pipelined out through the new west-bound Bovanenkovo-Ukhta line. However, the company plans to construct also an east-bound pipeline connecting major Yamal field with existing gas infrastructure on the eastern side of the Ob Bay.

Since production launch in 2012, Gazprom has invested more than 200 billion roubles in the project.