MMC Norilsk Nickel is perparing development concept for the gas complex of Norilsk industrial region

OJSC MMC Norilsk Nickel (hereinafter – the Company or MMC Norilsk Nickel) is preparing the Concept for development of Norilsk Industrial Region’s (hereinafter – NIR) gas complex till 2030. The Company has carried out the tender to select a contractor for implementation of the corresponding works. The Company is currently executing the procedures necessary for signing the contract with the winner. The concept shall be prepared till the end of 2013.

The primary goal of Concept development is to determine the list of strategic directions for the gas complex companies, operating in NIR, economically viable in the medium (2013 -2016) and long (till 2030) term. The Contractor shall determine and evaluate cost-effective options for development of the gas complex.

Likewise, practicality and prudence of supplying the sector’s products (including petrochemical and oil and gas processing products) to Russian and international carbon fuels markets shall be analyzed. Additionally, evaluation of the technical and economic parameters of establishing advanced processing facilities in Taimyr Dolgano-Nenetesk municipal district, using local resources to produce high liquidity and high value-added goods (construction of oil and gas processing facilities) shall be conducted.

However, the primary reason for developing NIR’s gas complex is to ensure reliable and uninterrupted supply of natural gas to consumers located in NIR in full amount, accounting for the prospective requirements of the primary production assets and energy complex. This aspect shall be reflected in the concept accordingly. The document includes implementation of the activities to maintain the production levels at the existing deposits, reliable transportation of gas to the consumers and execution of repair works at the gas complex asset in a sound and timely manner.

Terms of reference include assessment of three possible scenarios for development of the gas complex of NIR.

The baseline scenario assumes meeting the natural gas requirements of NIR and export of gas condensate. In accordance with this scenario, construction of underground gas storage capacities is also being considered.

Fuel and raw materials scenario assumes additional production of goods to be sold as raw materials for petrochemical industry or fuel.

Innovation scenario assumes development of additional facilities producing high liquidity and high value-added gas and gas condensate products, which includes acquisition of assets to increase the stock of natural resources available and starting development of the deposits that are currently on the list on undistributed subsoil resources, registered on the public balance sheet.
For reference. Fuel and energy complex of MMC Norilsk Nickel ensures energy security of Norilsk Nickel Group’s subsidiaries and the residential sector of Norilsk Industrial region and Taimyr (Dolgano-Nenetsk) municipal district.

Due to absence of alternative energy resources providers form the region, the Company’s fuel and energy industrial complex forms a closed energy supply system for Norilsk Industrial Region.

The gas complex of Norilsk Industrial Region is localized and is not connected to Russian Unified Gas Supply System.

Electrical networks in NIR are isolated from outside world and located remotely from UES of Russia. The closest free power transfer zone is located in YaNAD (Urengoi-Surgut-Nizhnevartovsk).