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Photo Credit: http://www.gazprom.com
In May 2014, Gazprom signed an historic deal with China on natural gas supplies that will help the country to diversify its exports. The ceremony was held by Alexey Miller, Gazprom’s CEO and Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC).
Gazprom is now building a pipeline to fulfill its 30-year contract for the supplies of 38 billion cubic meters of gas that could bring Russia some $400 billion. This project has become known as the Power of Siberia.
Resource base
According to the official roadmap, the new pipeline will transport gas from Yakutia’s Chayanda field, with gas reserves worth 1.2 trillion cubic meters and the Irkutsk Region’s Kovykta field, which holds 1.5 trillion cubic meters of natural gas and whose resources will be put into production at the next second stage.
The Power of Siberia will become deliver gas from these centers to Vladivostok via Khabarovsk.
The Yakutia – Khabarovsk – Vladivostok gas trunkline will be constructed at the first stage, and at the second stage the Irkutsk center will be connected to the Yakutia center by the gas pipeline.
The GTS route will run in parallel with the Eastern Siberia – Pacific Ocean operational oil pipeline, thus enabling to streamline the infrastructure and power supply costs. The GTS route will pass, inter alia, through swampy, mountainous and seismically hazardous areas.
The bulk of pipes used in the construction will be domestically manufactured. Some 11,700 experts will be engaged within Phase 1 of the Power of Siberia project and some 3,000 employees will ensure the pipeline's operation.
Investment decision
In October 2012 the Gazprom Management Committee adopted the final investment decision on pre-development of the Chayandinskoye field, construction of the Yakutia – Khabarovsk – Vladivostok gas trunkline as well as gas processing facilities in Belogorsk.
Specifications
· length – about 4,000 kilometers (Yakutia – Khabarovsk – Vladivostok – some 3,200 kilometers, Irkutsk Region – Yakutia – nearly 800 kilometers);
· diameter – 1,420 millimeters;
· working pressure – 9,8 MPa (100 Ata);
· annual throughput – 61 billion cubic meters.
As for deadlines, the first section of the Power of Siberia GTS, i.e. the Yakutia – Khabarovsk – Vladivostok gas trunkline will come on stream in late 2017, says the official website. One Gazprom manager, though, recently told journalists that the ambitious project has been delayed.
According to a source at Gazprom quoted by the Izvestia daily, the price is be set at $350-380 per thousand cubic meters of gas. The price is on par with what European customers currently pay, which could mean that amid the EU’s calls for diversification of its imports the eastward shift for Russian supplies will be quite easy to accomplish.
Many analysts have questioned the project’s profitability for Moscow for at least the first several years of operations.
According to the Guardian, “the Chayanda and Kovykta gas fields are in the depths of eastern Siberia. The ‘strength of Siberia’ pipeline that will bring the gas to China through Vladivostok will run 4,000km (2,500 miles) through swampy, mountainous and seismically active areas.”
Author: Mikhail Vesely
