Gazprom, BASF, E.ON Tap Siberia Turonian-Age Gas Field, RIA Says

OAO Gazprom (GAZP), Russia’s state-run natural-gas producer, BASF AG and E.ON AG (EOAN) started gas production from Turonian-age deposits in Siberia, RIA Novosti said.

Severneftegazprom, a joint venture of the three companies and license holder for the Yuzhno-Russkoye gas field, started pumping gas from the field’s Turonian geological strata to Russia’s domestic pipeline system today, RIA said.

Russia possesses more than 20 gas fields that contain about 2 trillion cubic meters (70.6 trillion cubic feet) of the Turonian-age deposits, RIA said citing Alexander Medvedev, Gazprom’s deputy chief executive officer. While technically difficult to convert into reserves, extraction of Turonian-age deposits is more effective than shale gas production, Medvedev said, according to RIA.

The Yuzhno-Russkoye field is the main natural gas source for the Nord Stream pipeline, which supplies fuel directly to Germany under the Baltic Sea.

To contact the reporter on this story: Marina Sysoyeva in Moscow at msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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