Page 9 - FSUOGM Week 01 2020
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FSUOGM PERFORMANCE FSUOGM
Gazprom reports eight-year record for output in 2019
Wells at the Bovanenkovo field, a Gazprom megaproject on the Yamal Peninsula. Source: Gazprom.
RUSSIA
The strong performance was supported by higher output at the Bovanekovo field.
RUSSIA’S state-owed gas giant Gazprom recorded its best gas production result since 2011 in 2019. Output rose by 0.5% to 500.3bn cubic metres (bcm) for the year, CEO Alexey Miller told reporters in the first week of January.
The export of gas to non-CIS countries declined by 1.3% compared to the record export levels attainted in 2018, reaching 199.2 bcm. At the same time, the export of gas to the post-So- viet countries grew by 2.2% to reach 37.7 bcm. Gazprom exported a total of 236.9 bcm of gas in 2019, Miller said.
“Gas supplies to a number of European coun- tries, including France, Austria, Hungary, and The Netherlands, reached historic highs,” the CEO pointed out.
The high volumes of exports were not all due to market demand. Gazprom was pump- ing record amounts across Ukraine in 2019 – an estimated total of 90bcm – ahead of a showdown over gas supply contracts with Kyiv that threat- ened to end in Russia cutting off Ukraine’s gas supplies. Gazprom pumped record amounts of gas into European storage ahead of the potential showdown so that it could keep its commitments to clients.
Gazprom also started to supply gas to China via the Power of Siberia gas pipeline in 2019. As much as 328mn cubic metres of gas have been transported via the pipeline.
The company’s domestic gas supplies fully met consumer needs although they declined by 1.6% compared to 2018, the company’s CEO said.
Miller added that 328mn cubic metres were delivered through the new Power of Siberia gas pipeline, which opened in December. “This volume will gradually increase to the projected 380bcm of gas per year,” he said.
Where does the gas come from?
Gazprom’s Bovanekovo megaproject on the Arctic Yamal Peninsula underpinned the com- pany’s strong performance last year. Gazprom launched the third and final stage of the field’s development in December 2018 - a project that will raise its output to 115 bcm per year from 83 bcm in 2017.
Other projects on Yamal such as the Khara- seyskoye field sanctioned in 2018 will drive Gaz- prom's production growth over the coming years and decades, making up for decline at mature fields further south.
Kharaseyskoye, which will pump 32 bcm per year of gas at its peak, is not due on stream until 2023, however. In the meantime, Gazprom will rely on the ongoing ramp-up at Bovanenkovo as well as contributions from the Chayandinskoye field in Yakutia to fuel growth. Chayandinskoye, which feeds gas into Power of Siberia, entered production in December.
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