UPDATE: Putin: New oil and gas pipelines to boost industry potential

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MOSCOW, Jan 18 (PRIME) -- New Russian oil and gas pipelines will boost industry potential and ensure export agreements are fulfilled, President Vladimir Putin said at an opening ceremony of Zapolyarye-Purpe and Kuyumba-Taishet oil pipelines and Bovanenkovo-Ukhta-2 gas pipeline on Wednesday.

“The new pipelines will significantly extend the abilities of Russia’s oil-and-gas industry and will provide benefit to the whole Russian economy. This is absolutely clear. And, what is really important, they will ensure further development of Russian regions,” the president said during a video conference, thanking every participant of the projects.

The president said that the pipelines were built in severe climate conditions with the use of new technologies and modern domestically made machinery, meeting all ecological standards.

“We plan to commission new promising oil and gas deposits, continue building up-to-date pipeline transportation systems, and focus on establishing new hi-tech refineries. All these tasks will directly influence Russia’s future energy security and gas availability in different regions. And, of course, secure implementation of export contracts,” he said.

“Global energy and hydrocarbon demand will only increase, this is why it is necessary to make prompt investment decisions concerning Russia-based projects. We need to take into consideration not only challenges of the global market, but monitor dynamics of this country’s market… not to hit any economic growth restrictions connected with a lack of energy resources or infrastructure.”

Gazprom CEO Alexei Miller said that commissioning of the Bovanenkovo-Ukhta-2 gas pipeline will move the system of gas supplies in the European part of Russia to the next level.

“This new facility will provide transportation of 264 million cubic meters of Yamal peninsula-produced gas to the unified gas supply system daily.”

Gazprom’s head added that higher gas production in Yamal and expansion of the northern gas transportation corridor will change gas supply schemes both within the country and beyond.

CEO of oil pipeline monopoly Transneft Nikolai Tokarev told reporters that crude companies increased 2017 orders for pumping via the Zapolyarye-Purpe pipeline to 7.5 million tonnes from 4.5 million tonnes.

“According to new data from yesterday, there are orders to transport 7.5 million tonnes in 2017, 12 million tonnes in 2018 and 21 million tonnes by 2020 via Zapolyarye-Purpe,” he said.

Deputy CEO of Transneft Sergei Andronov said that about a million tonnes of oil will be transported via the Kuyumba-Taishet pipeline this year and about 8 million tonnes by 2020.

“This is 57 (million tonnes) in four years,” he said “Zapolyarye-Purpe gives the possibility to transport oil to both western and eastern directions considering plans to expand the Eastern Siberia - Pacific Ocean oil pipeline system, and Kuyumba-Taishet is intended for the east… Should China-directed segment be enlarged to a capacity of 30 million tonnes, the possibility (of supplies via Zapolyarye-Purpe to the east) will occur.”

The Zapolyarye-Purpe-Samotlor pipeline has become the northernmost Russian oil pipeline with a total length of 488 kilometers and an annual capacity of 45 million tonnes. The first 430 kilometer segment of the pipeline, which transports crude from new oilfields of the Yamalo-Nenets Autonomous District and northern Krasnoyarsk Region, was started in 2011.

The Kuyumba-Taishet oil pipeline having a length of 700 kilometers stretches from Siberia-based Kuyumbinsky oilfield to the Taishet pumping station. It will allow the company to link the Yurubcheno-Tokhomsky deposit, developed by Rosneft, and the Kuyumbinsky deposit, developed by Slavneft and Gazpromneft, with the Eastern Siberia - Pacific Ocean oil pipeline.

The Bovanenkovo-Ukhta-2 gas pipeline having a length of over 1,200 kilometers and reserves of 4.9 trillion cubic meters of gas is intended to transport natural gas produced from deposits of the Yamal peninsula, including the largest Bovanenkovsky gas deposit developed by Gazprom, to Russia’s unified gas system. The neighboring Bovanenkovo-Ukhta pipeline was commissioned in 2012.

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