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

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

Addressing the meeting Alexander Ananenkov underlined that the Eastern Gas Program approved by the Russian Government not only created a framework for the gas industry development in Eastern Siberia and the Far East covering 60 per cent of the country’s area, but also provided a breakthrough in the regional economic development.

“The program contributes a lot to the intensive upgrade of the machine-building, shipbuilding sectors and the entire economy of Eastern Russia. Thus, execution of the prioritized Sakhalin – Khabarovsk – Vladivostok GTS project within the Eastern Gas Program is a crucial national task,” emphasized Alexander Ananenkov.

At present, an intensive build-up of construction capacities is in progress, the relevant infrastructure is being prepared and large-diameter pipes are being purchased. “Due to the rapid paces of work, the decision has been taken to increase the project investments up to RUB 50 billion in 2009,” noted Alexander Ananenkov.

The meeting paid special attention to the state support measures for the gas industry development in Russia’s Far East, both on the federal and the regional levels. It was noted that adoption of the required regulatory documents and approval of design and working documentation should not miss the tight deadline defined by the President and the Government of the Russian Federation for the Sakhalin – Khabarovsk – Vladivostok project. The speakers also underscored that the joint efforts of the local authorities and Gazprom’s specialized subdivisions aimed at defining the top-priority gasification facilities and gasification schemes should be carried out in parallel with the gas transmission system construction.

Based on the results of the 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 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 in the planning of agreed actions by the local authorities, federal agencies and companies responsible for the GTS construction and Russia’s Far Eastern regions gasification.

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.

The Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) is a top priority of the Eastern Gas Program. In pursuance of the assignment by the Russian Government and the decision by Gazprom’s Board of Directors adopted in September 2008, the work is currently underway to create this GTS for the purpose of developing gas supply to the Khabarovsk Krai and Sakhalin Oblast, and organizing gas supply to the Primorsky Krai starting from the third quarter of 2011.

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.