The government of the Yamal-Nenets Autonomous Area in western Siberia has approved a project to develop the Salmanovskoye (Utrenneye) oil and gas condensate field on the Gydan Peninsula. Gas from this field will be delivered to the planned Arctic LNG-2 liquefaction plant, the TASS news agency reports, citing the area's press service.

"A project to develop the startup facilities for the Salmanovskoye (Utrenneye) oil and gas condensate field on the Gydan Peninsula has been presented in a meeting in Salekhard. The project contractor is JSC Arctic LNG-2. Meeting participants agreed that the project could be considered legally permitted and in compliance with Russian law," the press release says.

According to the Yamal-Nenets department for natural resources management, the Salmanovskoye (Utrenneye) field is located a substantial distance from residential areas or any oil and gas pipeline infrastructure.

"These startup facilities will not affect reindeer migration routes. The environmental impact review was comprehensively conducted with due regard for nature conservation requirements and included an analysis of subsoil resources, the geological environment, soil, flora and fauna, the hydrosphere and air resources," a department representative said.  

TASS has reported that Novatek is considering the possibility of building a $10 billion Arctic LNG-2 plant on the Gydan Peninsula. Gas will be delivered to the plant from the Salmanovskoye (Utrenneye) oil and gas condensate field. The field's C1 and C2 reserves have been estimated at 1.2 trillion cubic meters of gas and 50.5 million tons of liquid hydrocarbons. Construction will begin in 2018.