RusEnergy

//Kovykta gas could go to China
10-03-2007 RBC News - Natural Resources Minister Yuri Trutnev is urging voters to accelerate development of the Kovykta gas field. He said Gazprom had submitted its Kovykta development plan, which consists of two projects, one for regional supplies and the other for exports. The possibility of gas exports to China could breathe new life into plans to build a gas pipeline along the East Siberia-Pacific Ocean pipeline, to connect Russia’s major gas fields in East Siberia, including Kovykta and Chayandinskoye. The plan had been supported by Yakutia’s authorities . In September, the Industry and Energy Ministry approved the Eastern Gas Program, under which the largest east Siberian gas fields, Kovykta and Chayandinskoye, would come online in 2017 and 2016, respectively. Under the approved Vostok-50 program Kovykta gas would be used for domestic needs only. Kovykta’s gas reserves are estimated at 1.9 trillion cubic meters. Gazprom plans to complete the acquisition of a 62.9 percent stake in RUSIA Petroleum, the project operator, from the Russian-British TNK-BP before December 1. The Natural Resources Ministry is campaigning for an earlier start on the Kovykta project. “The sooner we begin to develop this large gas field, the more cash we will get for the region’s social development and infrastructure construction,” he stressed. Trutnev said his ministry was in talks with various concerned organizations and departments, but that they “continue to resist.” A source at Gazprom told RBC Daily that an earlier start for Kovykta would only make sense if an agreement could be reached to sell gas to China. But first, it would be necessary to close the acquisition of the stake in the project. If an agreement is reached with China, Kovykta could produce between 35 and 37 billion cubic meters of gas a year, he estimated. TNK-BP, too, had lobbied to sell Kovykta gas to China. The possibility of gas exports to China could breathe new life into the idea of building a gas pipeline along the East Siberia-Pacific Ocean pipeline, to connect Russia’s major gas fields in East Siberia, including Kovykta and Chayandinskoye. The plan had been supported by Yakutia’s authorities. A working group has been set up to estimate the expediency of the project, including experts from Gazprom, Transneft and the Industry and Energy Ministry. A representative of the Industry and Energy Ministry told RBC Daily that the construction of the pipeline was still on agenda after the adoption of the Eastern Gas Program. The timeframe of the construction will be determined once there is more certainty with the project. “It is necessary to issue licenses for the largest gas fields, agree with China on gas exports, and implement a number of other measures,” the source said.