Russia ponders production alternatives in addition to Yamal Peninsula
The centre of gravity of Russian gas production is likely to start moving northwards to the Yamal peninsula in two years’ time. Senior Gazprom executives insist that first gas from the first Yamal field to come on stream, Bovanenkovo, will flow in the third quarter of 2012, and work continues apace on the gargantuan Bovanenkovo-Ukhta transport link that will carry Yamal peninsula gas towards Europe. But Yamal production is likely to be ramped up more slowly than had previously been planned. The investment required for Yamal is so huge and uncertainty about demand so persistent in domestic and export markets that brakes could be put on the peninsula’s expansion, highlighting the need to find alternative options to bridge the production gap.
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