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The timing of the development of the South Kirinsky deposit will not be affected by sanctions - Gazprom - EastRussia | Far East

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The terms for the development of the Yuzhno-Kirinsky deposit will not be affected by sanctions - Gazprom

Deputy Chairman of the Board of PJSC Gazprom Vitaly Markelov said in an interview with Gazprom that the US and EU sanctions would not have a significant impact on the timing of the commissioning of the Yuzhno-Kirinskoye field

The terms for the development of the South Kirinsky deposit will not be affected by sanctions -
“As is known, the sanctions of the United States and the European Union apply to the supply of equipment produced in these countries for the development of hydrocarbon (oil) deposits on the shelf with depths above 500 feet (150 m), as well as the development of the South Kirinskoye field. At present, the impact of sanctions during exploration is insignificant. Drilling contractors from countries that have not joined the economic sanctions are involved in drilling exploration wells at the Yuzhno-Kirinskoye field. The same possibility exists with respect to high-tech underwater equipment. Gazprom experts believe that the sanctions of the United States and the European Union will not have a significant impact on the commissioning dates for the South Kirinskoye field, ”he said.

At present, eight exploratory wells have been drilled at the Yuzhno-Kirinskoye field. Commissioning of the deposit is planned in 2021 year. Here it is supposed to extract 21 billion cubic meters. M of gas (fund of production wells - 37 units). The achievement of design capacity is provided for 11-th year of development of the field, according to Tass.

As part of the program to create in Eastern Siberia and the Far East a unified system of gas production, transportation and gas supply, taking into account the possible gas export to China and other countries of the Asia-Pacific region, Gazprom has established the Sakhalin Gas Production Center. The basis of the Sakhalin gas production center is the Kirinskoye and Yuzhno-Kirinskoye fields developed within the framework of the Sakhalin-3 project. In 2015, about 600 million cubic meters were produced at the Kirinskoye field. m of gas and 100 thousand tons of gas condensate.

This year it is planned to produce about 1,12 billion cubic meters. m of gas and 182 thousand tons of gas condensate. At present, construction of production wells is continuing at the Kirinskoye field. For drilling, Gazprom’s own floating drilling rigs are used: the Polar Star and the Northern Lights.

LNG Plans

Markelov also said that Sakhalin Energy, the operator of the Sakhalin-2 project, has begun developing project documentation for the third phase of a liquefied natural gas (LNG) plant. In June, 2015, Gazprom and Royal Dutch Shell signed a memorandum on the implementation of the project for the construction of the third production line of the Sakhalin-2 LNG plant.

Markelov recalled that the possibility of creating a third technological line was envisaged at the design and construction stage of the first two lines of the LNG plant in the village of Prigorodnoye. An integrated project concept for the construction of the LNG plant technological line with the capacity of up to 5,4 million tons per year, additional storage of LNG and port facilities, as well as increase of transport capacities from the shore technological complex in the northern part of Sakhalin Island to the LNG plant was developed.

As a result of the expansion, it is planned to bring LNG production at this so far the only LNG plant in Russia to 15 mln. Tons per year, having increased it by 1,5 times as compared to the current level.