Gazprom’s delegation headed by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee continues its business trip across the Far East and the Transbaikal region.

Today in Vladivostok Oleg Safonov, Plenipotentiary Envoy of the Russian Federation President to the Far Eastern Federal District and Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee co-chaired a meeting dedicated to the progress with the fulfillment of the tasks set by the President and the Government of the Russian Federation with regard to the development of gas supply to the Far East regions.

Attendance for the meeting consisted of heads and experts from Gazprom’s core business units and subsidiaries including Gazprom invest Vostok, Gazprom transgaz Tomsk, Irkutskgazprom, Gazprom pererabotka, Giprogaztsentr, Promgaz, representatives of the authorities of the Primorsky, Khabarovsk Krais and the Sakhalin Oblast as well as top managers of Rosneft and Eastern Energy Systems.

Addressing the meeting Alexander Ananenkov noted, among other things, that Gazprom was facing the crucial national task of constructing the Sakhalin –Khabarovsk – Vladivostok gas pipeline, which is a paramount target of the state run Eastern Gas Program.

In fulfilling the said task Gazprom has already started designing the Sakhalin –Khabarovsk – Vladivostok gas transmission system, with a declaration of intent for the gas pipeline construction for the “project” stage submitted to the local authorities and currently under consideration. The work is organized in such a way so that the pipeline is taken into operation in 2011 – the deadline set by the country’s leadership.

The gas pipeline project execution is an important part of the activities stepped up as part of the preparations for the 2012 APEC Summit in Vladivostok.

At the same time, the meeting particularly underlined that at an initial stage gas from the Sakhalin I project was the main gas supply source for the gasification of the Primorsky and Khabarovsk Krais, the Sakhalin Oblast and the Jewish Autonomous Okrug.

The resources of the Sakhalin III blocks will play a definitive role for further development of the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

In order to secure the satisfaction of gas demand from the paramount facilities in the Primorsky Krai, primarily the APEC Summit infrastructure, the Russian Government has to urgently take the decision to appoint Gazprom as an authorized organization responsible for marketing the state-owned share of gas in the Sakhalin I and II projects as well as for follow-up account settlements with the federal budget.

The participants expressed the unanimous opinion on the need for the state executive authorities, first of all the Ministry of Natural Resources and the Federal Agency for Subsoil Use, to promptly resolve issues concerning supply of resources to the Sakhalin – Khabarovsk – Vladivostok gas pipeline.

The resolution of the trunkline resource base related issues will enable to speed up the work on gas supply to and gasification of the Primorsky and Khabarovsk Krais and the Sakhalin Oblast and to intensively get engaged in engineering and constructing gas laterals and gas distribution infrastructure, which, in its turn, will create conditions for regional authorities to implement, as planned, new numerous projects of gas utilization by the population, industrial companies and household utilities.

“The soonest decision-making on such issues underlies the timely fulfillment of the Russian President and Government’s task to secure gas supply to the Primorye region in 2011 at the latest and energy supply for the APEC Summit,” stated Alexander Ananenkov.

“The fulfillment of the Russian President and Government’s tasks with regard to the Sakhalin – Khabarovsk – Vladivostok gas transmission system commissioning in 2011 and feedstock provision is under special control. The executive authorities must assume personal responsibility for the strict fulfillment of those,” underscored Oleg Safonov.

In their speeches representatives of the Far Eastern regions expressed interest in the soonest commissioning of the gas pipeline as that would enable to satisfy their growing demand for natural gas. Special emphasis was put on the fact that the gas transportation capacity currently available in the Khabarovsk Krai wouldn’t allow to meet projected gas demand in the short-term.

Gazprom’s representatives pointed out that the results of the recent marketing surveys performed by Mezhregiongaz confirmed a significant increase in projected natural gas needs of the southern Far Eastern Federal District versus the Eastern Gas Program targets. The development of gas consumption is now restrained in this area primarily due to the absence of sufficient gas transmission infrastructure.

The meeting emphasized that under the agreements between Rosneft and Gazprom the former would shortly carry out technical inspection of the Okha – Komsomolsk-on-Amur gas pipeline with engagement of experts from Gazprom and Rostekhnadzor (Russian Federal Service for Ecological, Technical and Atomic Supervision).

The participants also stressed that Mezhregiongaz and the Far East Generation Company had so far signed an Agreement to supply gas to power generating facilities in the Primorye region.

The meeting resulted in the assignment of tasks aimed at securing timely commissioning of the Sakhalin – Khabarovsk – Vladivostok gas transmission system and generating capacities in the Primorye region including energy supply facilities to be used for the APEC summit purposes.

Reference:

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 Eastern Gas Program prioritizes, inter alia, constructing and developing the Sakhalin – Khabarovsk – Vladivostok gas transmission system to be connected in future with the Yakutia – Khabarovsk – Vladivostok gas pipeline.

Gazprom’s Board of Directors adopted the decision to create and develop the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

Gazprom signed Memoranda of Interaction with the Plenipotentiary Envoy of the Russian Federation President to the Far Eastern Federal District as well as Cooperation Agreements and Gasification Accords with the Primorsky and Khabarovsk Krais, the Sakhalin Oblast and the Republic of Sakha (Yakutia). Gasification Accords were also signed with the Jewish Autonomous Okrug and the Kamchatka Krai.

The main provisions of the General Gas Supply and Gasification Scheme for the Far Eastern Federal District were developed.

The commissioning of the Sakhalin – Khabarovsk – Vladivostok gas transmission system and first gas deliveries to the Primorsky Krai must be secured in 2011 as tasked by the Russian President and Government.

Gazprom invest Vostok (a wholly owned subsidiary of Gazprom) was appointed as investment projects customer for the construction of the Sakhalin  – Khabarovsk  – Vladivostok and Yakutia – Khabarovsk – Vladivostok trunklines, with Giprospetsgaz named as general designer.