July 13, 2008

Head of Russia’s Gazprom Outlines Plans and Projects

After attending a conference on the future of Russia's oil and gas industry in Severodvinsk on 11 July, Aleksey Miller, head of Russia's energy giant Gazprom, held a news conference where he outlined the company's immediate and long-term projects and prospects.

He told the journalists that "in the future, priority will be given to the domestic market. We will thoroughly plan extraction and transportation capacities to meet our consumers' demand," Interfax reported at 1700 gmt. Miller added that the current rate of growth of domestic consumption was, at present, the highest in the country's history and higher than the corresponding increase on foreign markets.

"Gazprom has already entered Yamal, and the exploitation of the Bovanenkovskoye gas field will start in 2011. The gas field's output will be 140bn cu. M. a year," Aleksey Miller told the news conference, Interfax reported at 1705 gmt. Miller added that the Kharasaviyskoye gas field would produce 38bn cu.m. of gas annually. "Yamal will yield about 250bn cu.m. a year onshore," he said.

"Next year Gazprom will begin the construction of the Sakhalin- Khabarovsk-Vladivostok gas pipeline," Aleksey Miller said as quoted by Interfax at 1722 gmt. Gazprom is also considering obtaining the operating rights for the state share of gas in the Sakhalin-1 and Sakhalin-2 projects, he added. "It's important for us now to secure all the rights to the underground resources of the Sakhalin-3 fields," Aleksey Miller said.

An ITAR-TASS report at 1742 gmt quoted Aleksey Miller as saying that by 2020 Gazprom's gas output would reach 675bn cu.m. He said that about half of this volume would be extracted from new gas fields. Beside Yamal, off-shore extraction is another priority for Gazprom, Miller added. "Regarding off-shore gas extraction, we are, first of all, talking about the Shtokman field in the Barents Sea,", Miller said. He specified that its exploitation would start in 2013.

At 1720 gmt Interfax quoted Aleksey Miller as saying that "Gazprom has come up with a master plan" for developing gas industry facilities in conjunction with a general blueprint for developing power engineering facilities. "This plan has been submitted to the Energy Ministry. It's likely that instructions will be issued to examine the plan in the relevant ministries and submit it to the government for approval before the end of 2008," Aleksey Miller said.

Originally published by Interfax news agency, Moscow, in Russian 1700 11 Jul 08.

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