The first weld on Russia’s ambitious Power of Siberia pipeline was made on 1st September at a ceremony attended by numerous dignitaries, including Russia’s President, Vladimir Putin, Gazprom Chairman Alexey Miller, and Zhang Gaoli, First Vice Premier of China's State Council. The pipeline will take gas from Yakutia and Irkutsk eastwards to supply Russian consumers, an LNG project at Vladivostok, and markets in China, following the $400 billion export deal reached earlier this year.
Gazprom and China National Petroleum Corporation signed Russia’s largest-ever sales and purchase agreement on 21st May for the supply of 38 Bcm/year of pipeline gas to China over a period of 30 years.
Gas backbone: The Power of Siberia gas transmission system (GTS) is the backbone of the gas supply system being built in eastern Russia. It will run nearly 4,000 kilometres through five Russian constituent entities: the Irkutsk Region, the Republic of Sakha (Yakutia), the Amur Region, the Jewish Autonomous Region and the Khabarovsk Territory, and have a capacity of 38 Bcm/year of gas.
By late 2018, a 2,200-kilometre pipeline section will be built to connect the Chayandinskoye field in Yakutia to the city of Blagoveshchensk on the Russian-Chinese border.
Sections will also be constructed from the Kovyktinskoye field in the Irkutsk Region to the Chayandinskoye, a distance of around 800 kilometres, and from the town of Svobodny in the Amur Region to the city of Khabarovsk, a distance of around 1,000 kilometres). Power of Siberia will thus be connected to the recently completed Sakhalin-Khabarovsk-Vladivostok GTS.
The huge project will open up new opportunities for gasification of eastern Siberia and the Far East.
The aggregate gas reserves (C1 and C2) of the Chayandinskoye and Kovyktinskoye fields amount to some 3.95 Tcm, according to Gazprom, allowing the production of 60 Bcm/year. The gas deposit pre-development in the Chayandinskoye field will start in 2015, with production due to begin production at the end of 2018.
In late July the first pipes were delivered to Yakutia to build Power of Siberia's section from the Chayandinskoye field to Lensk. Over 120,000 tonnes of pipes will be delivered in 2014. Between 2014 and 2018 the project will need more than 1,700 million tonnes of pipe.
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