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BASF, Gazprom Begin Production From ZAO Achimgaz Joint Venture

Posted on: Thursday, 13 November 2008, 03:00 CST

German chemicals major BASF and Russian gas giant Gazprom have officially launched natural gas production at their ZAO Achimgaz joint venture in Siberia, Russia, which produces natural gas and condensate from the Achimov formation in the Urengoy deposit.

Together with the natural gas field Yuzhno Russkoye, which was commissioned in 2007, Achimgaz is now the second joint natural gas production project by Gazprom and BASF in Siberia.

The joint venture (JV) plans to recover up to 200 billion cubic meters (bcm) of natural gas and 40 million tonnes of condensate from the Achimov formation over a period of more than 40 years. The annual natural gas production target during the plateau phase is up to 7.5bcm.

ZAO Achimgaz was founded in 2003 as a joint venture by Gazprom's subsidiary Gazprom dobytscha Urengoi and BASF's wholly owned subsidiary Wintershall Holding with both partners holding equal shares.

Dr Jurgen Hambrecht, BASF chairman, said: "Today, are we not only procuring natural gas from Russia and marketing it with Gazprom, we are now producing gas together in Russia, too. That means more supply security for Germany and all of Europe. With these projects, for the first time a European company, namely BASF, is playing a central role in natural gas production in Siberia."

Source: Datamonitor

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