Pechora LNG Project, Nenets Autonomous District

Pechora liquefied natural gas (LNG) project involves the development of Kumzhinskoye and Korovinskoye gas and condensate fields located within Nenets Autonomous District (NAD).

The development includes construction of associated gas-transport infrastructure, an LNG plant, a gas treatment plant (GTP) and a marine export terminal.

Pechora LNG is developing the project on behalf of CH-Oil&Gaz. The latter coordinates oil and gas assets of ALLTECH Group, whosigned a framework agreement with Rosneft in May 2014 for development and financing of the project. The framework agreement is yet to be finalised.

CH Invest Company holds the license to Kumzhinskoye field, whereas the license to Korovinskoye field is held by EvroSeverNeft. Both licensees are subsidiaries of ALLTECH Group. Development of Korovinskoye field was entrusted to EuroNorthOil.

The feasibility study of the project was completed by Technip in May 2010 and pre-investment studies were simultaneously completed by Gyprospezgas in collaboration with Gazprom VNIIGAZ.

Overall investment for the LNG plant, along with associated infrastructure is estimated to reach $4bn. The project aims to export LNG to Asia-Pacific countries.

Kumzhinskoye and Korovinskoye gas fields

Kumzhinskoye field, which covers an area of 225km², was discovered in 1968. Korovinskoye field, covering an area of 134km², was discovered in 1975. The license for the two fields was awarded to the current owners in 2007 and 2009 respectively.

Following the discovery of Kumzhinskoye field, 23 wells were drilled. The wells had to be abandoned following an accident at well number 9 in 1979.

Drilling activities for appraisal well 29 at Kumzhinskoye field, contracted to Siberian Service Company, started in October 2010.

A 3D seismic survey, covering an area of 144m², was conducted at the field in 2010 by Narian-Marseismorazvedka following which, the field’s gas reserves increased by an additional 20 billion cubic metres (bcm).

At Korovinskoye field, existing wellheads number 42, 44, 47, 64 and 68 were restored in 2012 by Nenets Petroleum Company. Evroseverneft collaborated with Northern paramilitary group to develop an action plan for the wellhead restoration programme.

Development of the fields now involve drilling 16 wells on eight pads at Kumzhinskoye field and 16 wells on five pads at Korovinskoye field.

The two gas fields are estimated to hold combined reserves of approximately 145bcm of gas and 3.9 million tonnes of condensate. Condensate from the fields will be used to produce gasoline and diesel fuel to meet the NAD’s requirements.

Annual gas production from Kumzhinskoye is estimated at 3.2bcm and 170,000 tonnes a year of gas condensate, while annual gas production from Korovinskoye field is estimated at one billion cubic metres a year and 30,000 tonnes a year of condensate.

Pechora LNG plant details

The LNG plant will cover an area of 220ha within the Indiga community area on the coast of Pechora Sea. The complex will process approximately four billion cubic metres annually of dry gas and produce 2.6 million tonnes a year of LNG using patented C3MR technology licensed by Air Products and Chemicals (APCI), when Phase I of the project comes online.

The design further allows for expansion of the facility to process eight billion cubic metres a year of dry gas and increase LNG output to 5.2 million tonnes a year.

Gas transport facilities

Gas transport infrastructure for the project will include an 80km-long pipeline connecting the two fields, a 15km pipeline from Kumzhinskoye to the GTP at Krasnoye Village, a 95km methanol pipeline from the GTP to Korovinskoye field, and a 300km pipeline connecting the GTP to the LNG plant.

LNG from the project will be exported using LNG tankers supplied by Far Eastern Shipbuilding and Ship Repair Center (FESRC).