Gazprom to invest $38.4 billion in eastward pipeline to Vladivostok
BY JAMES MARSON
MOSCOW -- Gazprom will spend $38.4 billion launching a gas field and pipeline to Vladivostok in the country's far east by the end of 2017, Interfax quoted the company's chief executive as saying. Gazprom said in September that it would speed up plans to boost shipments east after the European Commission open an anti trust investigation into the company's practises in central and eastern Europe.
The company's chief executive Alexei Miller told President Vladimir Putin that the company would spend $13.63 billion launching the Chayanda field in Russia's far east and $21.41 billion on a pipeline to Vladivostok on the Pacific coast.
Mr. Putin said that developing Chayanda which holds around 1.3 Tcf of gas and another giant field, Kovytka, is the next stage of Russia's Eastern Gas Program. "I want to remind you that we agreed that the gas from these fields will primarily go for domestic needs, for domestic use," he told Mr. Miller, Interfax reported. "But considering the huge reserves. we can also create separately a center for export, oriented toward the Asia Pacific region."
Russia and Japan in September signed a deal to develop a LNG plant in Vladivostok. Mr. Miller said that the plant would cost around $6.99 billion and be completed by 2018. He said it would have a capacity of at least 10 mmt a year.
Dow Jones Newswires