Sakhalin – Khabarovsk – Vladivostok

Strategy

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator

Sakhalin – Khabarovsk – Vladivostok

The Eastern Gas Program prioritizes, inter alia, constructing and developing the Sakhalin – Khabarovsk – Vladivostok gas transmission system to be connected with a gas pipeline from the Republic of Sakha (Yakutia). At the same time, the pipeline system route will run across a considerable stretch within an integrated corridor with the ESPO (Eastern Siberia – Pacific Ocean) oil pipeline system.

In April 2006 the Board of Directors adopted the decision to create and develop the Sakhalin – Khabarovsk – Vladivostok gas transmission system. The system will enable to supply gas to most consumers of the Khabarovsk and Primorsky Krais, the Jewish Autonomous Oblast and the Sakhalin Oblast. The Sakhalin I project will be the source of gas supply to these constituents of the Far Eastern Federal District in the mid-term.

Project Customer

Gazprom invest Vostok (a Gazprom wholly owned subsidiary established pursuant to the Board of Directors? resolution in 2007) was appointed as Gazprom's investment projects customer within the Eastern Gas Program implementation.

Commissioning

The gas pipeline is to secure gas supply to Vladivostok and commissioning of generating capacities in the Primorsky Krai, including energy supply facilities to be used for the APEC summit purposes.

According to the task set by the Russian Federation Government, the Sakhalin – Khabarovsk – Vladivostok gas transmission system will be taken into operation and first gas will be delivered by Gazprom to the Primorsky Krai in 2011.

Current Status

In 2008 Gazprom started designing the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

The first joint of the Sakhalin – Khabarovsk – Vladivostok gas pipeline was welded on July 31, 2009.