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Novatek proposes gas condensate pipeline project

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MOSCOW, November 29 (RIA Novosti) - Russia's largest private natural gas producer wants build a gas-condensate pipeline with a projected annual capacity of 20-25 million metric tons to link North Siberia with the north of European Russia, the chairman of Novatek's managing board said Tuesday.

"The construction of the pipeline is extremely important for the state," Leonid Mikhelson said at the 3rd international forum on Russian natural gas.

Mikhelson said the share of gas condensate in the total volume of natural gas production in Russia was 20% last year and should be increased to 45% by 2020. To meet this goal, Novatek's head proposes the implementation of a set of measures, such as encouraging the exploration and the putting into operation of new deposits and changing the severance tax for gas condensate.

Mikhelson said that, besides Novatek, state-owned pipeline operator Transneft and other interested companies could be attracted to the project if it meant joint state-private partnership.

The pipeline will connect the Yamalo-Nenets Autonomous Area and the town of Indiga in the Arkhangelsk Region.

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