OREANDA-NEWS. November 20, 2007. The Gazprom Management Committee took notice of the information on the progress with preparing and executing the gasification program for Eastern Siberia and the Far East of the Russian Federation, reported the press-centre of Gazprom.

The Management Committee resolved to consider the development of a resource base in Eastern Siberia and the Far East as a Gazprom priority in a view of providing reliable gas supply to consumers within the comprehensive approach to gas utilization.

Reference:
The September 3, 2007 Order of the Russian Federation Industry and Energy Ministry approved the Development Program of the unified gas production, transportation and supply system with due regard of possible export to Chinese and Asia-Pacific markets (Eastern Program).

Pursuant to the document it is planned to construct four new gas production centers in the Sakhalin Island, Republic of Sakha (Yakutia), Krasnoyarsk Krai and Irkutsk Oblast. On April 18, 2007 Gazprom finally entered the Sakhalin II project as a leading shareholder in Sakhalin Energy owning a 50 per cent stake plus one share.

The Eastern Program execution will enable firstly to satisfy current and perspective gas needs in Eastern Siberia and the Far East and to start up exporting pipeline gas and LNG to Asia-Pacific region.

The Federal Task-Oriented Program on Economic and Social Development of the Far East and Zabaikaliye until 2010 proceeds from the need to advance the regional economy growth rate.  The gas pricing should be based on market principle due to the energy competition.

The Eastern Program foresees the construction of the Sakhalin-Khabarovsk-Vladivostok gas transportation system with total length of more than 1600 km. The system will enable to supply gas to the majority of consumers of the Khabarovsk and Primorsky Krais, Jewish Autonomous Okrug and the Sakhalin Oblast. The Sakhalin I project is the only source to supply gas to the said constituents of the Far Eastern Federal District in a mid-term perspective.

In the frames of the Eastern Program execution Gazprom signed the Memorandums of Understanding with Plenipotentiaries of the Russian Federation President in the Siberian and Far Eastern Federal Districts, as well as the Agreements of cooperation and Gasification Accords with the Primorsky, Khabarovsk, Krasnoyarsk Krais, Sakhalin and Irkutsk Oblasts Administrations, Agreement of cooperation with the Sakha Oblast (Yakutia) authorities. The Gasification Accords with the Amur Oblast Administration and Kamchatka Krai are under preparation.

The General Scheme of gas supply and gasification of the Irkutsk Oblast Administration is under execution. Particularly, the gas pipeline construction to Bratsk is at the final stage. The first consumers in the Irkutsk Oblast are planned to be gasified during 2007-2008.

Gazprom arranges a deal to acquire stakes in share capital of RUSIA Petroleum and East Siberian Gas Company furthering development of the General Scheme of gas supply and gasification of the Irkutsk Oblast.

The key points of the General Scheme of gas supply and gasification of the Far Eastern Federal District were developed.

Gazprom Invest Vostok a general customer & constructor service was set up with a view to build-up Gazprom production facilities in Russia’s East. Gazprom established the Representative Office in Sakhalin. The Regional services of Tomsktransgaz were set up in the towns of Yuzhno-Sakhalinsk and Vladivostok.

Pursuant to the instructions of Vladimir Putin, Russian Federation President, following the results of the meeting dedicated to the social and economic development of the Kamchatka Krai as well as the meeting chaired by Viktor Zubkov, Prime Minsiter of the Russian Federation resulted in Gazprom entering the gas pipeline construction project from the Sobolevsky Region to Petropavlovsk-Kamchatsk. The gas pipeline construction is planned to end up in 2010. The gas pipeline commissioning will enable to develop gas supply projects in the Kamchatka Krai.