Russia’s Gazprom Boosts Natural Gas Reserves in 2024

Russia’s energy giant Gazprom has expanded its natural gas resource base by performing geological exploration in 2024 to fortify the Russian Federation’s energy security. This enabled the company to augment its gas reserves to once again eclipse its production rates, with the biggest chunk stemming from the Arctic and the Yamal Peninsula.

While highlighting that its reserve replacement ratio for natural gas had exceeded production levels for 20 consecutive years, the Russian giant explained that the bulk of gas reserve additions was achieved in the Arctic on the shelf of the Kara Sea, in the waters of Taz Bay, and the Yamal Peninsula at the Dinkov, Antipayutinskoye, Leningradskoye, and Kharasaveyskoye fields.

In addition, the company has also discovered new deposits at the Dinkov and Padinskoye fields in the Yamal-Nenets Autonomous Area. The Russian player claims its “robust” resource base ensures its sustainable journey, guarantees long-term reliable gas supplies to consumers, and contributes to strengthening Russia’s energy security.

Gazprom’s Management Committee highlighted that the firm conducts large-scale comprehensive geological exploration in Russia every year to replenish its extracted reserves and expand the mineral resource base.

Therefore, Gazprom carried out a large volume of 3D seismic surveys, drilling, well tests, and construction works in 2024, ensuring that its reserve addition rates again surpass its production rates. The company carried on with the construction of exploratory wells across the fields of the Irkutsk and Yakutia gas production centers in eastern Russia.

The firm also obtained two subsurface use licenses for areas in the Irkutsk Region and the Republic of Sakha (Yakutia), as well as a license for the right to use a subsurface site in the Orenburg Region. Gazprom intends to continue to develop Russia’s resource base in 2025.

On a mission to make this happen, the firm confirmed its projected investment program and budget for 2025, earmarking RUB 1.52 trillion (almost $15.22 billion), a drop of about 7% compared to the planned spending of RUB 1.64 trillion (nearly $16.43 billion) for 2024, to pursue its top-priority energy projects aimed at securing gas balance in peak periods.

The investment will bankroll gas developments such as a boost in production centers in eastern Russia and the Yamal Peninsula, infrastructure expansion in Russian regions, the Power of Siberia gas trunkline capacity enlargement together with the gas processing complex, and the implementation of the Eastern Gas Supply System trunkline project.

Analysts claim the united front, which is often described as an impressive show of unity that former U.S. President Joe Biden managed to secure with other Western nations in the wake of the Ukraine crisis, is likely to be put to a test now that President Donald Trump is back in the White House since his agenda differs from Biden’s worldview and his priorities lie elsewhere, given his expansionist zest toward Canada, Greenland, and the Panama Canal.

However, Trump recently said that he would have to impose sanctions on Russia if it does not agree to a deal to end the war in Ukraine. This comes shortly after the U.S. Department of the Treasury took further action in the last few days of Biden’s term in office to fulfill the G7 commitment to curb the Russian primary revenue source by imposing a flurry of new sanctions.

These sanctions entail Gazprom Neft and Surgutneftegas, over 180 oil-carrying vessels that are perceived to be members of the shadow fleet, dozens of oil traders, oilfield service providers, insurance companies with Russian ties, and energy officials.