Gazprom is launching production at the Yuzhno-Russkoye gas field. It’s located in the Yamalo-Nenets Autonomous Area in Siberia. It will supply the Nord Stream gas pipeline to northern Europe.
Yuzhno-Russkoye is the first field Gazprom has launched in almost ten years. Its proven reserves consist of more than 800 billion cubic meters of gas and its estimated reserves exceed 1 trillion cubic meters. Once the production facility is operating at full capacity, which is planned by 2011, it will provide 25 billion cubic meters of natural gas per year. The main destination of the gas is northern Europe via the Nord Stream pipeline now being constructed. Gazprom is the holder of the license for developing the Yuzhno-Russkoye field. It has also agreed with German BASF subsidiary, Winthershall, to bring them into the project. BASF got a 25% stake in the project after giving up a greater share in distribution venture Wingas GmbH and swapping assets in Libya The Russian company is planning to get E.ON, another German producer, involved as well. (RussiaToday)