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Russian gas pipeline for Far East exports to be constructed by end of 2017

MOSCOW -- Alexey Miller, Chairman of the Gazprom Management Committee, has informed Vladimir Putin, President of the Russian Federation, that after having started pre-development operations on the Sakhalin Island and the Kamchatka Peninsula, Gazprom has set itself a task to start the second stage of the Eastern Gas Program and establish new gas production centers.

The first to be constructed are the Yakutia and the Irkutsk gas production centers. “Having started operations at the Chayandinskoye field, we are planning to construct a gas pipeline from Yakutia to Vladivostok via Khabarovsk the gas pipeline length will be 3,200 km. After that, along with the Kovyktinskoye field pre-development, we are planning to start construction of a gas pipeline that will serve as the second part of a 800 km gas pipeline from Yakutia,” said Miller.

He stressed that the Investment Rationale for the Yakutia-Khabarovsk-Vladivostok gas pipeline construction had already been adopted. The gas pipeline will be constructed by the end of 2017.

A provision is also made for gas supply from the Irkutsk gas production center to the west. Thus, Eastern Russia will be connected to Western Siberia, the main gas-consuming center, so that the unified gas supply system will cover the whole country.

“We could also mention the LNG plant construction near Vladivostok, because even though we give priority to the domestic market, we are seriously considering creation of a new center for Russian gas exports to Asia-Pacific. You know this market is the worlds most receptive and it is developing at a rapid pace. It offers hopeful prospects, and in the nearest future we might create gas export capacities that will be comparable to gas supplies to Europe, or will even overpower them,” noted Alexey Miller.

Gazprom is planning to supply pipeline gas to Asia Pacific on a second-priority basis after finishing the LNG plant construction and signing long-term contracts for LNG export from Russia.

DOW JONES NEWS SERVICES

11/05/2012

 

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