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Energy firm confirms Power of Siberia faces no delay and is on time

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24 March 2015


Alexey Miller, chairman of Gazprom, insisted: 'Operations are in full swing and will be completed right on time.' Picture: Gazprom

The iconic Power of Siberia gas project will be completed on time and will not be delayed by any other rival pipeline deals, according to energy giant Gazprom.

Last week there were concerns that the $55billion line, which will supply gas along a 4,000km route from the Sakha Republic to China's eastern industrial heartland, could be in jeopardy.

But Alexey Miller, chairman of Gazprom, insisted: 'Operations are in full swing and will be completed right on time.'

His comments came during a meeting with Yegor Borisov, the head of the Sakha Republic, which is also known as Yakutia, to discuss the Eastern Route supply line.

Power of Siberia

Comments came during a meeting with Yegor Borisov, the head of the Sakha Republic. Picture: Gazprom

The confirmation comes just days after the Russian government approved a draft law on the ratification of the agreement with China to provide gas along that route.

And as further evidence that the project is forging ahead as planned, the main contractor Stroytransgaz has entered into contract talks for the supply of building materials.

The Yakut cement plant Yakuttsement will also soon start production of reinforced concrete for the construction of the pipeline itself in a deal worth 3.2billion roubles ($5.5million). Within two years the factory will have to produce 300 of such slabs every day between May and October.

When it was announced in May last year, the Power of Siberia project was seen as a 'diplomatic coup' for Moscow with some 38 billion cubic metres of gas expected to be shipped along the easterly pipeline.

Driving that deal was the need to tap into Yamal gas, including the giant Bovanenkovo Yamal field which was opened in 2012 and now pumps around 40 billion cubic metres a year but can produce up to 140 bcm.

Power of Siberia

Chayandinskoye field, the main field of the Yakutia gas production center. Picture: Gazprom

But recently international news agency Reuters had claimed the plans could be put on the back burner, with focus being shifted to a less ambitious project to send gas from existing fields through a pipeline thousands of kilometres further west in the Altai region.

The easterly pipeline is due to come on stream in 2019 but according to Reuters on Wednesday the Altai project would see no need for the development of new fields.

The build-up of Gazprom's production activities has had a positive effect on the regional economy. In the recent five years the company has invested 10.1 billion roubles (£173million) into the projects in Yakutia, and in 2015 the volume of investments will reach some 42 billion roubles ($722million).

Comments (1)

Bold Step Forward ! Same time Eco Friendly Technology should be adopted at the time of Hydro Carbon exploration. Effluent Treatment Plant must be installed (preferably mobile) to treat the effluent generated out of drilling with treated water recycling procedure which can be utilized again at the time of drilling..My company is engaged in same type of business for last 20 years.
Bimalendu Paul. (e- mail address:-bbpaul, India
28/03/2015 00:12

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