$38 BILLION gas PROJECT RUSSIAN GAS Giant 'Gazprom' TO Supply ASIAN MARKETS Moscow Region, Russia October 29, 2012 -Video from RIA Novosti (Видео с Российское агентство международных новостей) Russian President Vladimir Putin met with Gazprom CEO Aleksey Miller at the presidential residence outside Moscow on Monday. The discussions focused on the Eastern Gas Program, the development of gas fields in Siberia, and the construction of new pipeline routes. Putin said the state-run gas company should accelerate prospecting at the Chayanda gas field in Yakutia and the construction of a pipeline linking to Vladivostok on the Pacific coast. Miller reported that overall investments to fulfil these tasks will be around 1.2 trillion rubles ($38 billion). "Constructing the facility requires 430 billion rubles, with some 770 billion for the construction of the gas pipeline", he said. The project is aimed at boosting Gazprom's presence on Asia-Pacific markets. "This is the largest market in the world, and one that is developing very swiftly... So there are lots of prospects, and in the near future we will be able to set up facilities at par with those that supply gas to Europe or even better ones", Miller told Putin. * Aleksey Miller, Gazprom CEO (speaking Russian): Mr. Putin, Gazprom has been consistently implementing the Eastern Gas Programme. Two gas-production centres have been created -- in Kamchatka and Sakhalin. Two gas-main pipelines have been built -- from Sobolevo to Petropavlovsk-Kamchatsky and from Sakhalin through Khabarovsk to Vladivostok. As of today, Gazprom continues operating in Sakhalin where a new gas field called Kirinskoye will be introduced in 2013 -- unique for its sea-bed technology, for the first time in Russia. Now that the work on developing the gas fields in Sakhalin and Kamchatka has begun we are tasking ourselves to start the second phase of the Eastern Gas Programme and create new gas-production centres. First of all, it concerns... Vladimir Putin, Russian President (speaking Russian): It's Kovykta in Irkutsk and [a centre in Yakutia] Chayanda? Miller: Yes. Chayanda is the main gas field of the Yakutsk gas-production centre. The overall prospected resources comprise 53 trillion cubic metres of gas in East Siberian and Far Eastern mainland and 15 trillion cubic metres of gas in the shelf. Putin: How much is there here in Irkutsk? Miller: The Irkutsk gas-production centre's prospected resources are estimated to have 3.7 billion [?trillion] cu.m. Putin: How much is here? Miller: It's 2.5 billion [?trillion] cu.m and it's 1.2 trillion cubic metres at the Chayandinskoye field. On the whole, the region has been prospected only slightly -- eight per cent of the mainland and six per cent of the shelf. Putin: Are you planning to lay the pipe to the East from Yakutia first? Miller: We believe it's a priority to start developing the Chayadinskoye gas field, to be followed by the Kovyktinskoye gas field along with the Irkutsk production centre, the stage to follow being the Krasnoyarsk centre. Having started the operations at the Chayandinskoye gas field we are planning to lay a gas-main pipeline from Yakutia through Khabarovsk to Vladivostok -- 3,200 km long, after which as we develop the Kovyktinskoye gas field in parallel we'll start building the second part of the pipeline from Yakutia, 800 km long. Putin: So as to connect these two gas fields? What about a pipeline to the west from here? Miller: Delivery of gas from the Irkutsk gas-production centre to the west is envisaged, too -- towards Krasnoyarsk, Novosibirsk and Omsk -- it's more than 2,000 km. Thus we are planning to get the eastern part of our country, Eastern Siberia connected to Western Siberia, the main consumption centre. Putin: This is how we will get an integrated gas supply system. Miller: An integrated system for the whole Russia. Miller: The investment feasibility study has been approved. Speaking of the new Pacific gas pipeline, we expect it to be built by the end of 2017. We are also planning to build a new gas liquefaction plant somewhere in Vladivostok. We do give priority to domestic markets but we are genuinely interested in setting up a new center for Russian gas exports to Asia-Pacific. You know that this is the largest market in the world, and one that is developing very swiftly. Some of the most rapidly growing markets include China, India, Japan, Korea, Taiwan, Thailand, Bangladesh, Singapore and Vietnam. So there are lots of prospects, and in the near future we will be able to set up facilities at par with those that supply gas to Europe or even better ones. Miller: Constructing the facility requires 430 billion rubles, with some 770 billion for the construction of the gas pipeline. CLICK HERE to view all the Videos/photos we've uploaded: http://www.youtube.com/user/WestEndNews/videos

• published: 31 Oct 2012
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