Norilsk Nickel develops gas supply facilities

MMC Norilsk Nickel, JSC informs that pursuant to the Strategy of Production and Technical Development until 2025 adopted by the Board of Directors of the Company on October 27, 2011, MMC Norilsk Nickel implements the program of gas supply facilities development.

In particular, the Strategy provides for the further development of the gas system – the construction of operational gas wells and arrangement of Pelyatka Gas Condensate Field in order to secure sufficient gas production for continuous power supply of the Company’s production facilities and Norilsk Industrial District living quarters.

The commissioning of the gas condensate field makes it possible to produce over 15 million m³ of gas per day and 220 k tons of condensate per year. The deposit gas reserves are 250 billion m³ (С1+С2).

At the moment, the Company continues with drilling works (cluster site #5) and construction of development gas wells.

Taimyrgaz, JSC (subsidiary of MMC Norilsk Nickel) announced open tender for drilling contractor in order to begin construction of development gas wells at cluster site #6.

Tender winner will perform works related to construction and maintenance of winter roads; materials and drilling equipment supply; construction of temporary gas pipeline to provide gas to the cluster site; derrick installation; wells drilling; wells development; and cluster site area reclamation. The works are to begin in February 2012. Well construction works should be finished by November 30, 2014, at the latest.

MMC Norilsk Nickel is building Pelyatka Gas Condensate Field – Dudinka gas and gas condensate pipeline in order to secure transportation of Pelyatka gas and gas condensate to Norilsk Industrial District consumers.

In 2011, the construction of main underwater pipeline section at Yenissei River was finished, and the construction of reserve underwater pipeline section, main and reserve sections of condensate pipeline at Yenissei River started (works are to end in 2013). In 2012, the linear pipeline segment shall be constructed (the works shall start at the segment 0 km – 80 km).

Total investments into gas supply facilities – USD 4.0 billion.

According to Igor Klochko, the General Director of Taimyrgaz, JSC the new pipelines will secure the transportation of Pelyatkinsk gas and condensate after the field is commissioned, increase the safety and decrease the risks of the current gas pipeline system.

ABOUT MMC NORILSK NICKEL:

MMC Norilsk Nickel, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.

The key production units of the Company’s group in Russia are at the Polar and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, Australia, Botswana and South Africa.