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Chernomorneftegaz to produce 15% more gas than Crimea needs in 2014

SIMFEROPOL, March 26, /ITAR-TASS/. Crimea’s gas producing company Chernomorneftegaz plans to extract over two billion cubic metres of gas in 2014, which is 15 percent more than the peninsula needs, the CrimeaInform news agency said.

“Since the Odessa deposit is under development and wells were commissioned throughout last year, we should produce more than two billion cubic metres in 2014,” the agency quoted Crimean First Deputy Minister of Fuel and Energy Vadim Zhdanov as saying.

He said that Crimea had enough gas to meet all of its needs and more, with excess gas being pumped into the underground storage facilities that can hold one billion cubic metres of fuel.

“All excess gas will be stored so that we could use it during winter. Daily consumption in summer and winter varies significantly. In summer we consume about 2 bcm of gas a day, while in winter 7.5-9 bcm depending on the temperature of the air. When it dropped below 20 degrees, consumption reached 13 bcm a day,” Zhdanov said.

In 2013, Crimea consumed 1.65 bmc of gas, which matched Chernomorneftegaz’ production volumes.

Chernomorneftegaz increased gas production in 2013 by 40.6 percent to 1.67 bcm and plans to produce 3 bcm of gas by 2015.

The company also produces and explores for hydrocarbons in the Black Sea and the Sea of Azov and develops two gas condensate, seven gas and one oil deposits on the peninsula. It has 17 deposits on its books. It also owns the gas transportation system and an underground gas storage facility.

Italian ENI and French EdF are Chernomorneftegaz’ partners under a production sharing agreement for four offshore blocks in Crimea.

Until March 17, Chernomorneftegaz belonged to Ukraine’s gas and oil company Naftogaz Ukrainy, but after the secession referendum in Crimea on March 16 the property and assets of Chernomorneftegaz and Ukratransgaz (owns the gas transportation system) were nationalised by the Crimean parliament and contributed to the authorised capital of a new Crimean company also called Chernomorneftegaz, which now has the status of a Russian company.

The Crimean authorities said they would put Chernomorneftegaz on sale, with Russia’s Gazprom considered the main buyer.

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