Yamal Oil and Gas Investment Projects
About 85% of natural gas production in Russia is carried out in the Yamal region. Approximately 70% of total Russian oil reserves and 22% of world natural gas reserves concentrated in that area. The investment potential of Yamal oil and energy projects equals to nearly 8 trillion roubles. Yamal major projects are at different stages of implementation, and I would love to highlight the most ambitious of them one by one:
Yamal LNG – Launched at end 2013, Yamal is not only one of the most complex liquefied natural gas projects ever undertaken; it is also one of the most competitive.
More than 200 wells will be drilled for the project as three liquefaction trains are built, each of which offers an annual capacity of 5.5 million metric tons. To ensure its stability, the plant will be supported by tens of thousands of piles driven some 20 meters into the permafrost. To facilitate the transport of equipment and staff, the port of Sabetta and an airport were built and are now operational. Over the next three years, the port of Sabetta will take delivery of 150 modules representing 450,000 metric tons, transported from Asia by some 20 vessels. The port will also serve to export the LNG.
The second one is Gazprom Neft Novy Port. Novoportovskoye is one of the largest fields of exploitable oil and gas condensates in the Yamalo-Nenets Autonomous District. Recoverable C1 and C2 reserves are more than 250 million tonnes of oil and condensate, with over 320 billion cubic metres of gas. Work on the infrastructure needed for full-scale operations is still ongoing. Oil is being shipped through a transfer complex at Cape Kamenny, which has an annual capacity of 8.5 million tonnes. The field and the terminal will be linked by a 100km pipeline.
The third one is “Bovanenkovo – Ukhta” pipeline and railway line, the next generation of a gas transportation system (GTS), is being constructed to transport natural gas from Bovanenkovo field to the central regions of Russia and then to European customers. Implementation of this project is one of the priorities of commercial development of Yamal, whose GTS has to become, over time, the key element of the Unified Gas Supply System, providing transportation of gas in the amount of more than 300 bln. cubic meters per year from the peninsula fields.
The fourth one is Novy Urengoy Gas Chemical Complex. The design capacity of the plant shall be up to 400,000 tons of low-density polyethylene of various grades per year. This production facility will become the largest one in Russia. In addition to core products, the complex under construction will produce a wide fraction of hydrocarbons and methane fraction.
And the last one – but not the least – is “Zapolyarye – PurPe – Samotlor” pipeline, which is aimed at supplying crude oil from major new fields in the Yamalo-Nenets autonomous district and northern Krasnoyarsk territory to oil refineries in Russia. The oil processed at the refineries is exported to the Asia-Pacific region. The total estimated investment for the construction of the Zapolyarye-Purpe pipeline is 120 billion rubles ($3.9bn).