1 Apr 2022 12:17

Gas resource base of Yamal, Gydan enough for both pipeline and LNG projects - minister

MOSCOW. April 1 (Interfax) - The natural gas resource base of Russia's Yamal and Gydan peninsulas makes it possible to carry out both pipeline and liquefied natural gas (LNG) projects, Natural Resources Minister Alexander Kozlov said in an interview with Interfax.

"The Natural Resources Ministry believes that the resource base for Yamal and Gydan, which is 23.3 trillion cubic meters, makes it possible to implement both pipeline and LNG projects. The plus of a pipeline is low cost, while the plus of LNG is maneuverability in terms of sales, counterparties and so on," Kozlov said.

"We also need to remember that the country has other important projects that are geographically located in this system of coordinates that Yamal and Gydan are in. I'm referring to the Northern Sea Route (NSR). This subject is being constantly monitored by the president, and the initiative of the NSR's development is not stopping for a minute, even in today's difficult realities. In this sense, it's simply criminal not to use LNG where there is access to seaports, especially since the implementation of LNG projects pulls along the development of other sectors," Kozlov said.

"But we also shouldn't forget that the gas supply system presumes, foremost, supplying the domestic market. At the same time, Russia must continue to remain a stable supplier of pipeline energy resources. The whole balance must be maintained," he said.

Asked whether the proposed inventory of gas reserves announced last year has been carried out, he said that any inventory "is always useful, it's good to have counted reserves in hand."

"For the Natural Resources Ministry, such an inventory would be important in terms of forecasting future production and revenues from it. But 95% of gas fields have been distributed, so companies have the source materials. We are prepared to organize this worth with companies. But the initiative did not come to us from companies, there was a proposal from the governor of the Yamalo-Nenets Autonomous District. So far this idea is not being advanced in any way by the initiator," Kozlov said.