New gas cluster with Northern Sea Route access is possible in Yakutia - Natural Resources Minister

MOSCOW. March 13 (Interfax) - The implementation of the Geology: Revival of a Legend federal project will create a new gas production cluster in Yakutia with the potential to deliver gas via the Northern Sea Route, the National Resources Minister Alexander Kozlov said, speaking in the State Duma at the Communist Party's "Legislative support for the development of the fuel and energy complex of the Russian Federation" roundtable.

The gradual depletion of the most profitable gas reserves in traditional regions and the shift of gas production to hard-to-reach places necessitate the creation of a new production and transport infrastructure, he said. "This year, as part of the Geology: Revival of a Legend federal project, five sites were put up to search for gas fields. The total amount of funding is 4.2 billion rubles. This will create a new gas production cluster in Yakutia with the potential for delivery via the Northern Sea Route," he said, emphasizing that the task was set to fully explore the gas potential of Yakutia.

"Due to external pressure and the closure of 'traditional' sales markets, the issue of diversifying the methods for delivering hydrocarbons to consumers is of particular importance: LNG via the Northern Sea Route or transport via the main gas pipelines of the Unified Gas Supply System across the continental part of the country," he said.

Kozlov noted that most of Russia's allocated fund of gas reserves is concentrated in the Arctic zone: "At the same time, 35% of Arctic gas reserves require additional exploration and are yet to be specified. That is, the growth potential is colossal. The most promising regions, where large gas fields have been discovered in recent years, are the Arctic Shelf, Krasnoyarsk Territory and Yakutia. The main gas reserves of the unallocated fund are concentrated in Yamal."