Gas Project

Russian Gas Market

In 2010, Russia’s proved gas reserves amounted to 44.8 trillion cm or 23.9% of the world’s total gas reserves. Russian production of gas accounted for 18.4% of the global production in 2010.

Russian gas market is dominated by Gazprom, who also owns and operates the Russian natural gas transmission system and has a monopoly to export gas. The exclusive rights to develop large fields of strategic importance to Russia (fields which include recoverable gas resources from 50 bcm) belong to Gazprom. The independent companies have smaller fields and/or large oil fields with associated gas. Major independent integrated oil and gas companies have ambitious natural gas development plans for the future. As the result, production from independent gas producers has increased significantly from 2007 to 2013.

The gas market in Russia is being liberalized and is becoming more open for independent players. The Russian Government is also increasing federal gas tariffs and the domestic gas price is expected to be increasing as the result of market liberalization initiatives.

Gas Market in Perm and Udmurtia region

Most of the large gas fields in Russia are located in the North where Gazprom has an extensive pipelines network connecting the region with European part of Russia. At the source the pressure in the pipelines is high; however, it decreases sharply once Urals are reached. Therefore, there is a need for additional gas supply into the pipeline in this region. The location of SOGH gas fields, therefore, is sufficiently attractive to obtain the Gazprom pipeline connection. Connection period is estimated to be one to two years.

Once connected to Gazprom pipeline, gas may be sold either - to Gazprom at a discount from regulated tariffs or to local industrial gas users at a discount from regulated tariffs, while paying the Gazprom transportation cost.

SOGH’s Gas project

SOGH currently holds licenses for Komarikhinskoye gas field. Planned gas project activities include analysis of current gas field, gas transportation options and/or Gazprom pipeline connection, gas treatment plant construction, well preparations and other activities.