Eight Trillion Rubles For Yamal Developments

September 7, 2010
Russia intends to turn the far northern Yamal Peninsula into the country’s new main gas hub, which is to account for one third of the country’s production. That will cost money, up to eight trillion RUB, a new development program for the area reads.
According to newspaper Vedomosti, the federal government in August this year approved a preliminary feasibility study for the area. That plan states that up to eight trillion RUB will need to be invested in the peninsula for the regional ambitions to be fulfilled.
Developments are already underway in the area. Gazprom has the Bovanenkovo gas field as one of its top investment projects and intends to start production in the area in 2012. Meanwhile, Novatek is planning the construction of a LNG plant nearby its South Tambey field.
Challenges are abundant. Not only is climate harsh and ice conditions highly complicated. The waters are also very shallow and Novatek will have to apply unprecedented technology for the export of its South Tambey LNG. According to Vedomosti, the depths in the field are only about six meters, while a LNG tanker needs depths of up to 18 meters. Novatek will have to either make the waters deeper, or establish a terminal at sea, or possibly even construct the whole LNG plant at sea.
In addition comes the challenge of resettling the regional reindeer herding settlements, Vedomosti writes.
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