Today in Khabarovsk Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee held a meeting as part of the business trip by the Company's group of experts to the Far East. The meeting was focused on finishing the construction of the first startup complex at the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS).

Previously, Gazprom's experts visited construction sites of the GTS, the gas distribution station (GDS) in Vladivostok and a gas pipeline from the GDS to the Russky Island including the submerged crossing under the Eastern Bosphorus Strait.

The meeting noted that welding of the 1,350-kilometer linear part of the GTS first startup complex was nearly completed by then. More than 1,300 kilometers of the gas pipeline have been trenched and buried. Testing is underway at six sections with a total length of 382 kilometers and 640 kilometers have been tested. Remediation of lands occupied by the GTS construction has started at separate sections where the testing is finished. Upon testing of the whole linear part, Gazprom will commence gas deliveries into the Sakhalin – Khabarovsk – Vladivostok GTS, the first major element of the Unified Gas Supply System to emerge in Eastern Russia.

Simultaneously with the GTS construction, the Company carries on gasification of Vladivostok: startup operations are underway, landscaping activities including paving of the access road have begun at the city's GDS.

The inter-settlement gas pipeline connecting the GDS to the Russky Island is almost ready. The construction activities include placement of a unique submerged crossing under the Eastern Bosphorus Strait and a lateral to CHPP-2 in Vladivostok. Construction of the 21-kilometer gas pipeline from the GDS in Vladivostok to CHPP-1 with a lateral to the Severnaya boiler house is underway.

In full compliance with the assignment by the Russian Government, natural gas will be delivered to Vladivostok and the 2012 APEC Summit venues located on the Russky Island in September 2011.

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.

The Eastern Gas Program gives priority to the creation and development of the Sakhalin – Khabarovsk – Vladivostok gas transmission system. Launched in July 2009, the GTS construction is targeted at developing gas supplies to the Khabarovsk Krai and the Sakhalin Oblast as well as arranging gas deliveries to the Primorsky Krai. The annual capacity of the 1,350-kilometer first start-up complex will make up 6 billion cubic meters of natural gas.

The total design length of the gas pipeline from the GDS in Vladivostok to the Russky Island with a lateral to CHPP-2 in Vladivostok is some 34 kilometers: more than 15 kilometers on the mainland, some 12 kilometers on the Russky Island and nearly 6 kilometers (two strings: main and backup) under the Eastern Bosphorus Strait. The submerged crossing under the Eastern Bosphorus Strait is being built with the use of directional drilling techniques. An extremely challenging geological environment (rocks), a significant length (2.8 kilometers) and a considerable tunnel diameter (762 millimeters) make the crossing unparalleled in Russia.