Novosibirsk hosts meeting on gas supply to Siberian Federal District
Release
Novosibirsk has hosted a meeting on gas supply to the Siberian Federal District (SFD). The meeting was co-chaired by Anatoly Kvashnin, Plenipotentiary Envoy of the RF President to SFD and Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee.
The meeting was attended by the Members of Gazprom’s Management Committee including Bogdan Budzulyak, Head of the Gas Transportation, Underground Storage and Utilization Department, Viktor Ilyushin, Head of the Department of Relationships with Regional Authorities of the Russian Federation and Vasily Podyuk, Head of the Gas, Condensate and Oil Production Department.
The Gazprom Group was represented by the heads of Gazprom’s structural units as well as top management and experts of Tomsktransgaz, Irkutskgazprom, Vostokgazprom, Krasnoyarskgazdobycha, Zapsibgazprom, Mezhregiongaz, Promgaz, Gazprombank, VNIIGAZ and regional gas distribution companies.
Also present at the meeting were SFD’s executive authorities and representatives of Rosgazifikatsiya, Vneshtorgbank, RUSIA Petroleum, Geliymash and other companies.
The meeting discussed the prospects for expanded gas deliveries to and infrastructure construction in eastern regions of the Russian Federation as well as top priority challenges and progress of gas supply to SFD. Additionally the meeting addressed topical issues connected with sustainable functioning and development of Gazprom’s gas transportation network in SFD.
The parties particularly underlined the need of maintaining a comprehensive approach to gas supply based on General Schemes and drafting regional energy balance forecasts. The parties also emphasized that gas deliveries to final consumers were a target of gas supply programs. Interaction between Gazprom and regional authorities becomes particularly important in this regard. The construction of gas pipelines within settlements and preparation of consumers to receive gas at the expense of various-level budgets should be synchronized with the construction of pipelines between settlements. The success of gas supply efforts will directly depend on local consumers’ readiness to receive gas.
Furthermore, the meeting discussed a Draft program on setting up an integrated gas production, transmission and supply network in Eastern Siberia and the Far East with the account of possible gas exports to China and other countries of Asia Pacific (hereinafter the Program).
The parties approved the Program presented by Gazprom and underscored that it would be a fundamental document for the SFD gas industry’s development. The parties shared the opinion that meeting domestic gas demand was a top priority of the Program, with gas exports to be effected via an integrated export channel.
Special attention was paid to the development of SFD’s gas processing and gas chemical industries, in particular to the creation of helium production capacities using hydrocarbon feedstock extracted in SFD.
Summarizing the meeting results, Anatoly Kvashnin pointed out: “Today we have continued the work that began at a December 2005 meeting in the town of Novy Urengoy. So far we have taken concrete steps to intensify gas consumption in SFD: we started implementing Gazprom’s General Scheme on gas supply to the Irkutsk region. The most important issue now is to keep the same pace. To achieve it, we specified today the tasks for Gazprom and SFD’s authorities. A consistent position of all the parties involved in the process is a key to the successful solution of the problems representing exceptional social and economic importance for the whole Russia”.
“Intensive development of eastern Russia’s oil & gas industry will set the stage for comprehensive development of the Siberian and Far Eastern Federal Districts. Nowadays Gazprom is actively engaged in this sector. Recently we have signed gas supply contracts with the Irkutsk region and Khabarovsk Territory. Today’s meeting is another step towards forming eastern Russia’s gas industry including developing a potent gas chemical industry able to process the East Siberian gas rich in helium, ethane, propane as well as delivering gas to eastern regions”, – said Alexander Ananenkov.
Background
The Siberian Federal District is comprised of 16 constituents of the Russian Federation. In November 2004 Gazprom and SFD inked a Memorandum on major activities aimed at intensifying gas consumption in cities, towns and rural area of SFD, with cooperation agreements and gas supply contracts signed with eight and four SFD’s constituents, respectively.
Between 2003 and 2005 Gazprom earmarked RUR 469 mln to build gas infrastructure in and supply gas to SFD’s regions, with RUR 951 mln slated for these purposes in 2006.
Gazprom is currently engaged in the construction of the SFD-located Barnaul – Biysk – Gorno-Altaisk gas pipeline with an offshoot to the Belokurikha Resort, allocating RUR 536 mln for these purposes over 2000 to 2005, and RUR 100 mln is scheduled for 2006.
As of January 1, 2006, SFD’s gas debt to Gazprom accounted for RUR 233.6 mln including RUR 231 mln owed by the Kemerovo region.
Gazprom’s programs on gas supply throughout the Russian Federation are formed under modern methodological principles based on General Schemes of gas supply and infrastructure construction. Aiming to optimize the structure of regional energy balances and taking into account the social significance of consumers, the General Schemes stipulate applying local resources, realizing existing energy conservation potential in the gas consumption sector and using at best state-of-the-art technical solutions, materials and construction technologies.
Engineering and constructing gas laterals, distribution stations and networks is part of an interrelated cycle where capacities are tied up to gas extraction and transportation by the United Gas Transmission System of Russia.
Construction priorities and timing are identified based on the project economics and return on investment criteria, with a focus also placed on the social significance of consumers.
Information Directorate, OAO Gazprom