Meeting of coordination center for Sakhalin – Khabarovsk – Vladivostok gas transmission system construction

RELEASE

Today in Khabarovsk Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee moderated a meeting of the coordination center under the Plenipotentiary Envoy of the Russian Federation President to the Far Eastern Federal District (FEFD) and responsible for the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) construction.

Attendance at the meeting consisted of representatives from executive bodies of the Primorsky and Khabarovsk Krais, and the Sakhalin Oblast, heads and experts from Gazprom’s specialized subdivisions, subsidiary companies and contracting agencies.

Addressing the meeting Alexander Ananenkov underlined that the Sakhalin – Khabarovsk – Vladivostok gas trunkline was the key component of the Unified Gas Supply System expansion into eastern Russia within the Eastern Gas Program execution.

“The national strategic significance of the gas transportation system being constructed in the Far East is confirmed by the fact that the project’s construction was initiated personally by Russian Prime Minister Vladimir Vladimirovich Putin. At the same time, Russian President Dmitry Anatolyevich Medvedev, placing a huge emphasis on eastern Russia’s economic advancement congratulated the project’s participants on the launch of the gas transmission system construction,” noted Alexander Ananenkov. According to Mr. Ananenkov, this considerably increased the responsibility of all the participants, both in terms of performance quality and in terms of meeting the preset deadlines.

The meeting participants addressed the progress with the Sakhalin – Khabarovsk – Vladivostok GTS construction as well as the issue of the GTS resource base expansion including through the subsurface resources development within the Sakhalin III project.

Based on the results of meeting held by the coordination center under the Plenipotentiary Envoy of the Russian Federation President to the FEFD, the local executive bodies, Gazprom’s specialized subdivisions and subsidiary companies were tasked to assure the timely execution of the Sakhalin – Khabarovsk – Vladivostok GTS project.

Background

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. According to the Program new gas production centers will be established in Eastern Russia: the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

The Sakhalin – Khabarovsk – Vladivostok GTS construction and development is a top priority of the Eastern Gas Program. The GTS will be subsequently connected to a gas pipeline from the Republic of Sakha (Yakutia). Construction of the Sakhalin – Khabarovsk – Vladivostok GTS progresses according to the assignment by the Russian Government and the decision by Gazprom Board of Directors.

The first start-up complex of the Sakhalin – Khabarovsk – Vladivostok GTS planned for commissioning in the third quarter of 2011, will secure gas supply to Vladivostok and commissioning of power generation capacities in the Primorsky Krai required, inter alia, for the 2012 APEC Summit.

The first start-up complex will have the length of 1.350 km and the throughput capacity of 6 billion cubic meters per annum. Later on, the

pipeline will be extended to 1,800 km. At full capacity the system will convey around 47.2 billion cubic meters of natural gas. This will enable to meet the prioritized gas demand of certain Russia’s Far Eastern regions (the Khabarovsk and Primorsky Krais, the Jewish Autonomous District and the Sakhalin Oblast), as well as to create additional opportunities for gas export to Asia Pacific countries.

Natural gas from the Sakhalin Island offshore and the Yakutia’s fields will be the major resource base for the GTS development. In July 2009 Gazprom acquired the subsurface licenses for the Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks of the Sakhalin III project. Geological exploration is already in progress at the Kirinskoye field (the license acquired in 2008). The field will be commissioned in 2014.

Gazprom invest Vostok (a wholly owned subsidiary of Gazprom) is the customer of the project for the construction of the Sakhalin – Khabarovsk – Vladivostok gas trunkline.

The coordination center under the Plenipotentiary Envoy of the Russian Federation President to the FEFD and responsible for the Sakhalin – Khabarovsk – Vladivostok GTS project was created in December 2008. The coordination center is focused on the planning of agreed actions by the local authorities, federal agencies and companies responsible for the GTS construction, as well as Russia’s Far Eastern regions gasification.

 

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