OREANDA-NEWS. September 8, 2008. Yakutsk hosted the Economic Forum “Megaprojects of Russia”. Gazprom’s delegation led by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee took part in the Forum.

Addressing the Forum participants Alexander Ananenkov noted that the implementation of such a megaproject as the Eastern Gas Program allowed creating the conditions for fast socioeconomic development of the Russia’s East, as well as for raising the production activity and living standards of the local inhabitants. The Program implementation requires RUB 2.4 trln of investments through to 2030.

In order to effectively implement the Program, the Company has already established subsidiaries in Eastern Siberia and the Far East regions, including Gazprom invest Vostok, a customer of construction work, and started the geological exploration, gas transmission systems development and gasification of a number of eastern constituents of the Russian Federation.

The construction of the Sakhalin – Khabarovsk – Vladivostok gas main to be completed in 2011 is currently one of the top priority projects within the Eastern Gas Program. Design and exploration work is underway. A pipeline route has been approved. Construction work is scheduled to commence in the 1st quarter of 2009.

Alexander Ananenkov said that Gazprom had obtained three subsoil use licenses from the federal strategic fields stock pursuant to the Russian Federation Government Directive regarding the following fields: Chayanda oil, gas and condensate field (Yakutia), Kirinskoye gas field (offshore Sakhalin Island) and Semakovskoye gas and condensate field (Yamal-Nenets Autonomous Okrug). In addition, the Chayanda field development provides for constructing the Yakutia – Khabarovsk – Vladivostok gas transmission system and a gas processing plant for helium production. Alexander Ananenkov emphasized that the construction of the gas transmission system would ensure gas supply from Yakutia to the southern regions of the Far Eastern Federal District and the Pacific Ocean coast.

The speaker pointed out that it was necessary to continue cooperation with Trasneft in the issues related to laying the above mentioned pipeline in the same corridor with the Eastern Siberia – Pacific Ocean oil transmission system.

Alexander Ananenkov pointed to the necessity of advanced processing of Yakutia’s gas including the establishment of helium production, storage and marketing facilities. In 2009 construction sites for a gas processing plant and a gas-chemical integrated plant will be determined, as well as the logistics for gas derivatives supply to the domestic and foreign markets, as part of the Yakutsk gas center development. Gas-chemical and gas processing facilities construction is not reasonable unless carried out in a partnership with Russian and foreign companies in order to utilize their investment and technological potential.

As Alexander Ananenkov emphasized, the successful execution of the Eastern Gas Program required developing and implementing a state system of efficient actions aimed at stimulating accelerated development of the gas industry in eastern Russia. This is, first of all, improving the tax policy (particularly granting severance tax remissions for gas production in Russia’s East), harmonizing gas projects with transport infrastructure development plans (including the railroad network), launching gas industry specialist training programs in Russia’s East, creating regional machine-building facilities turning out products for the oil and gas industry, promoting the construction and engineering potential of the region, etc.

Within the scope of the Yakutsk Economic Forum Gazprom’s delegation took part in holding panel discussions and meetings, which addressed issues surrounding the execution of megaprojects in Russian Federation regions, the backing and involvement of the state in the implementation of those, the removal of limitations on economic expansion in eastern Russia’s regions as well as issues concerning the execution of complex investment territory development projects.