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    Gazprom Neft Plans Pipe to Monetise Arctic Gas


The company has opted to build a pipeline instead of an LNG plant to monetise gas from its main Arctic oil project.

by: Joseph Murphy

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Gazprom Neft Plans Pipe to Monetise Arctic Gas

Russia’s Gazprom Neft plans to build a pipeline to monetise gas at its Novoportovskoye oil project on the Yamal Peninsula.

State design agency Glavgosexpertiza said on September 2 it had approved blueprints submitted by the company for constructing a 115-km pipeline across the Gulf of Ob. The pipe will link Novoportovskoye with Russia’s national gas system at a connection point at the Yamburgskoye gas field. Its flow capacity will be 20.5bn m3/yr.

Novoportovskoye is one of the largest finds in the Russian Arctic, with 250mn mt of oil and condensate and 320bn m3 of gas, according to Gazprom Neft. To date, development has focused on the field's liquid resources, with output currently working up to a plateau rate of 160,000 b/day. But Gazprom Neft now wants to target its gas reserves as well.

Earlier the company had mooted building an LNG terminal to export gas from Novoportovskoye and other fields in the area. Its decision to build a pipeline suggests this plan has been abandoned. Gazprom Neft is yet to disclose a timeframe for the project's completion.