China National Chemical Engineering Group Corporation (CNCEC) and Russia's Oil Gas Holding signed an agreement on the four-year PAYAKHA oil and gas field project during the 23rd St. Petersburg International Economic Forum (SPIEF) that opened on June 6 local time.
Located at the Krasnoyarskiy Kray, the PAYAKHA oil and gas field project is the second of its kind in the arctic region since China and Russia agreed to jointly build an "Ice Silk Road".
As the general EPC contractor of the project, CNCEC's missions include the construction of the equipment for crude oil treatment of six oil fields, a port for crude shipping with an annual crude throughput of 50 million tons, a more than 410-kilometer crude oil pressure line and a 750-megawatt power station and tank zone.
The arctic region is a key section of Russia's Maritime Strategy as it buries many treasures. In addition to rich fishery resources, it has been confirmed that the area has about 13 percent of the global petroleum resources.
In addition, natural gas and coal reserves that have not been explored in the area take up 30 percent and 25 percent of the global reserves.
The Russian PAYAKHA Field is one of the areas in the arctic region that reserve rich petroleum, with proved probable oil reserve of 420 million tons and possible oil reserve of 2 billion tons.
As issues like climate change, energy demands, shipping prospects, globalization and global governance becoming a new driving force of the governance and cooperation of the arctic region in recent years, the PAYAKHA project has becomes a key pivot of the "Ice Silk Road".
It is expected that the field will go into operation in 2023 and its products will be transferred to Europe and Asia.
The project also plays a significant role in Russia's "Strategic Plan for Exploration and Development of Oil and Gas Resources in North Polar Continental Shelf" and will drive the development of energy industries both within the country and the arctic region.
Meanwhile, the project will enrich China's clean energy supply and accelerate the optimization of China's energy structure.
CNCEC signs agreement with Russia's Oil Gas Holding on a four-year duration for the PAYAKHA oil and gas field project during the 23rd St. Petersburg International Economic Forum (SPIEF) opened on June 6 local time. [Photo/China National Chemical Engineering Group Corporation]
(Executive editor: Hao Wen)