Gazprom and Yamal-Nenets Autonomous Area furthering strategic cooperation

Salekhard hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Dmitry Kobylkin, Governor of the Yamal-Nenets Autonomous Area.

The cooperation between Gazprom and the Yamal-Nenets Autonomous Area is strategically important. The Company produces the bulk of natural gas in this region. Gazprom is developing a fundamentally new gas production center in the Yamal Peninsula on the basis of the Bovanenkovskoye field. The main section of the Bovanenkovo – Ukhta-2 gas pipeline being built to become a part of the gas transmission infrastructure for gas delivery into the Nord Stream 2 export gas pipeline and to boost the gasification in Russia’s Northwest is located in the Yamal-Nenets Autonomous Area.

The meeting pointed out that Gazprom and its subsidiary companies invested considerable funds into large-scale projects in the Yamal-Nenets Autonomous Area. Between 2010 and 2015 they totaled nearly RUB 1.5 trillion. This year’s investments were mainly allotted for the Bovanenkovskoye field pre-development, Bovanenkovo – Ukhta-2 gas pipeline construction, development of the second pilot block of the Achimov deposits in the Urengoy field as well as retrofitting and technical re-equipment of the Medvezhye and Urengoyskoye fields.

Layout of gas mains in Yamal-Nenets Autonomous Area

The parties discussed the gasification outlook in the Yamal-Nenets Autonomous Area. At present, pursuant to the proposals of the Area’s Government, Gazprom is drawing up a program for expanding gas supply to and gasification of the Area between 2016 and 2020.

Alexey Miller and Dmitry Kobylkin signed an Agreement of Cooperation between Gazprom and the Yamal-Nenets Autonomous Area Government for 2016.

According to the document, the parties will continue cooperating, particularly, while dealing with the Yamal Peninsula fields, in order to ensure energy saving and increase energy efficiency as well as expand gas use as a vehicle fuel.

The Agreement outlines Gazprom’s obligations on gas and petroleum products supply to consumers in the Yamal-Nenets Autonomous Area. The Area’s Government, in its turn, will provide for creating an optimal tax regime for the companies investing into production, transmission and processing of hydrocarbons as well as into gasification.

As before, Gazprom will support educational institutions in mapping out educational programs and organizing practical training at production facilities. The students getting occupations sought for by the Company will be able to participate in contests for receiving Gazprom’s scholarships.

The parties are also planning to enter into a Sci-Tech Cooperation Agreement.

After the meeting Alexey Miller took part in the ceremony dedicated to the 85th anniversary of the Yamal-Nenets Autonomous Area.

Background

The principal document regulating the cooperation between Gazprom and the Yamal-Nenets Autonomous Area is the General Agreement. In furtherance of the document the parties annually enter into Agreements of Cooperation. They have also signed a Memorandum of Cooperation within the Yamal project and the Accord on Gasification.

Between 2007 and 2015 Gazprom invested some RUB 715 million into the Yamal-Nenets Autonomous Area gasification, constructed six gas branches with the total length of 32 kilometers. By early 2015 the gasification level in the Area had increased by 13 per cent – to 47.8 per cent (Russia’s average being 65.4 per cent).

As part of the Gazprom for Children program, the Company has built sports & health centers in the Yamal-Nenets Autonomous Area – in Nadym and Novy Urengoy, versatile sports complexes in 12 municipalities, reconstructed an indoor ice arena in Pangody settlement.

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