Gazprom considers Lukoil participation in Eastern Gas Program

May 27, 2014

Russian gas monopoly Gazprom is considering various options of the oil company Lukoil’s participation in Gazprom’s Eastern Gas Program and gas exports to China, a source familiar with the negotiating process told ITAR-TASS on May 26.

Lukoil recognized Gazprom’s priority in export supplies, the source said. According to the deal, gas supplies from the Bolshekhetskaya Depression would reach 14.5 billion cubic meters a year by 2020, the source said. Caspian supplies will increase threefold to 4.5 billion cubic meters. Lukoil’s gas from the Timan Pechora field will be transported to the Sosnogorsk gas processing plant. The companies will also develop pipe supplies, including those of Gazpromtrubinvest’s products.

Under the agreement on partnership till 2024 signed at the St. Petersburg International Economic Forum, the companies will cooperate in the exploration, production, transportation and supplies of hydrocarbons in the Nenets and Yamalo-Nenets Autonomous Areas, Russian continental shelf and the Caspian, Eastern Siberia and Far East and other regions in Russia and abroad.

The two companies are planning to coordinate geological exploration and exchange data, and develop data storage standards. Gazprom and Lukoil will develop ties in oil and gas condensate transportation by sea from the northern territories of the Nenets and Yamalo-Nenets Autonomous Areas. Lukoil’s gas will be transported through Gazprom’s system, while Lukoil’s transportation and loading facilities will transport Gazprom’s gas.

Copyright: ITAR-TASS, 2014