China entitled to postpone launch of Russian gas supplies via Power of Siberia — Gazprom

The Russian side is not considering the issue of delays

© ITAR-TASS/Alexei Nikolsky

SINGAPORE, October 27. /TASS/. The Chinese side has the right to postpone the launch of Russian gas supplies via the Power of Siberia pipeline pursuant to the contract, Gazprom Deputy Chairman of the Management Committee Alexander Medvedev told TASS on Tuesday, adding though that the company does not expect any delays as "everything is proceeding on schedule."

"From our side everything is proceeding according to the schedule, and we are not considering the option [of delays]," he said.

The Chinese partners "are flexible but taking into account how they started construction in their territory we don’t expect any delays," Medvedev said.

According to the memorandum of understanding on cooperation in the natural gas field from June 24, 2009, which was signed by Gazprom and China’s CNPC, Russian gas will be supplied to the country in two directions - western and eastern.

The eastern route involves development of new fields in Eastern Siberia, firstly Chayanda field and Kovykta gas field. Power of Siberia gas pipeline is going to be built starting from these fields, which later will be connected with the gas pipeline Sakhalin - Khabarovsk - Vladivostok. Branch pipe to China will be built near Blagoveshchensk. The western route includes delivery of 30 bln cubic meters through the pipeline from the Yamal-Nenets Autonomous District through the Altai region to the northwest of China for 30 years.

On September 3, Gazprom and CNPC signed a Memorandum of Understanding on natural gas supplies from Russia to China through the pipeline from the Far East. According to various estimates, its capacity could be from 25 to 38 bln cubic meters per year.

China begins construction of Power of Siberia pipeline for gas delivered from Russia

China has officially started construction of its section of the eastern gas pipeline route known as the Power of Siberia that’ll deliver up to 38 billion cubic meters of Russian gas annually.

The welding of the first joint on the pipeline was part of the opening ceremony in China Monday. It was held near the Chinese city of Heihe of the northern Heilongjiang province bordering Russia. The pipeline will stretch as far as Shanghai.

Russian Prime Minister Dmitry Medvedev took part via a video link. He called the pipeline the world’s biggest infrastructure project. 

The Vice Premier of the State Council of China Zhang Gaoli also took part in the ceremony via video link. He said that such large-scale projects are a good foundation for promoting a strategic partnership between the two countries and for social and economic progress.

The Power of Siberia gas pipeline is due to become fully operational in 2018 and will link with the Chinese gas infrastructure already in place, according to government papers.

In May 2014, Russia’s Gazprom and the China National Petroleum Corporation (CNPC) signed a 30-year framework deal to deliver 38 billion cubic meters of gas to China annually using the eastern route.The construction of the western pipeline named the Power of Siberia–2 ,that’ll deliver another 30 billion cubic meters of gas to China, will start soon Prime Minister Medvedev announced during the ceremony.

"I am sure that soon we will reach final agreement on building the second Russian-Chinese pipeline for gas deliveries via the Western route," Dmitry Medvedev said.

Moscow and Beijing will continue cooperating over energy, including nuclear power, as it is one of the major partnership areas between the two countries, according to Medvedev.

Earlier Gazprom head Aleksey Miller said the company was negotiating with China onsettlements in rubles or yuan. So far, the price China will pay for Russian gas is unclear.

The global energy market has recently seen changes such as slowing demand from Europe and an increase in interest from Asian countries, Xin Zhang, Research Fellow at the School of Advanced International and Area Studies, told RT.

“The changes in the international market puts the Chinese side in the Russian energy deal in a slightly stronger bargaining position, so it’s the main drive behind the CNPC’s position to decline the advanced payment,” he said.

Russia started building its section of the 2,500-mile eastern route last year. The line’s gas transmission system (GTS) is expected on-stream in late 2017. The total cost of gas production and transmission facilities in Russia is estimated at $55 billion, Sputnik reports.

The Power of Siberia pipeline will also benefit the Russian regions it runs through, Medvedev added. Russia will increase its gas exports and speed up the gasification process in the Far East and Eastern Siberia, he said. The route was selected to ensure a large number of Russian cities and villages will have access to gas. It will provide new jobs, increasing the competitiveness of the region’s economy and its investment attractiveness.

Last year CNPC refused to pay Gazprom a $25 billion advance for the pipeline construction. The advance payment could have helped China get a discount for its gas from Gazprom.

China has started to build a gas pipeline continued, "The Power of Siberia" on its side

Moscow. June 2nd. INTERFAX.RU - China has started to build a gas pipeline continued, "The Power of Siberia" on its side, the official ceremony of welding "first joint" will be held later this month, according to "Gazprom" following talks between Alexey Miller, the first deputy prime minister of the State Council Zhang Gaoli and Chairman of the Board Directors CNPC Wang Yilin.
"The work on the Russian sector are on schedule. Last week, the construction of the pipeline to receive gas from Russia was officially launched in China, and the welding of the first joint is scheduled for the end of June," - said in a press release.
Participants of the meeting discussed in detail the progress of the negotiations on gas supplies to China by the "western" route and schedule of further preparations for the signing of the contract.
"Signing the contract for" eastern "route created a solid foundation. The negotiations on the" west "we are moving forward at a good pace. An important stage - the signing of the General Conditions of" western "route. Fixing the exact coordinates of crossing the border completely and unambiguously defined corridor for the delivery of the first 30 billion cu. m of gas from Western Siberia, and the next, "- said Miller after the talks.
A year ago - 21 May 2014 - "Gazprom" and the CNPC signed an agreement of purchase and sale of gas through "Eastern" route. The contract was signed for 30 years and involves the supply of Russian gas to China in the amount of 38 billion cubic meters. per year.
"West" route for delivery of gas to China from fields in Western Siberia in the amount of 30 billion cubic meters. per year. May 8, 2015 "Gazprom" and the CNPC signed an agreement on the basic conditions of supply of natural gas pipeline from Russia to China by the "western" route.

Bryansk application RUSNANO

Nanocomposite coatings domestic production can increase the life of the pipeline up to 60-80 years

Most of the gas pipeline "Power of Siberia" will be built on the basis of the pipes are protected from corrosion nanocomposite domestic production. Plant polymer coatings of the Bryansk region with the help of RUSNANO was able to oust the Russian market with the world's giants of the chemical industry.

- The Russian market of polymer coatings for corrosion protection of pipes has always been closed to the domestic producer, and it is not surprising that many of my business colleagues were skeptical: perhaps you will be able to deal with Europe, and even in the service sector for the rich oil industry? - With this story began, General Director of JSC "Metaclay" Sergei Shtepa.

Indeed, in the early 2000s, when the idea caught fire Shtepa, Russian pipe industry was so dependent on foreign suppliers, that one day to reduce the cost of large-diameter pipes Ministry of Industry and Trade of the Russian Federation was even forced to reset the first 9 months of import duties on high-density polyethylene - at the request of manufacturers of pipes. Foreign monopoly enjoyed free access to our market, at its discretion, changing pricing policies, where appropriate dumping and thus pushing local producers.

Reigned opinion - Russian high-tech is not promising, because contrary to the interests of the owners of the largest commodity business

- We have already had severe laboratory tests, which gave unique results: polymer nanocomposites for high-density anti-corrosion protection of pipes of large diameter can increase the lifetime of the pipeline up to 60-80 years, - says Sergey Shtepa. - These results have not yet been able to achieve any one of the world competition. But ... the view prevailed that no Russian high-tech is not promising, because it contradicts the interests of the largest owners of the commodity business: pipe pumps oil and gas, growing exports, with imports is not a problem - so it is beneficial to keep the country on the "raw needle". But just then I heard another point of view, at first sight paradoxical. And not just anywhere, but in the leadership of Rusnano. Later it was publicly announced by Anatoly Chubais: "The Russian energy industry, which provides 50% of budget revenues, 30% of GDP, provides a unique market for innovative products."

Shtepa applied to RUSNANO, has successfully passed a series of challenging selection procedures. The project came to a real investment. The company was founded "Metaclay" in the Bryansk region. The total project budget amounted to 2.2 billion rubles, of which 1.75 billion accounted for RUSNANO, and the rest - private investors. Radically situation Gazprom has launched a program of import substitution, which is supervised personally, Alexei Miller, and the support provided by its portfolio company RUSNANO.

- Products "Metaclay" has been certified by the Institute of VNIIGAZ, then we started to tense but constructive negotiations with the domestic producers of pipes. In the beginning, of course, there were some doubts about whether we can make coating, competing on quality with the West. But our specialists consulted - proudly says Shtepa.

Companies' Metaclay "managed to occupy 20% of the Russian market of polymers for corrosion protection of large-diameter pipes

Domestic development of polymeric nanocomposites to protect the pipe from corrosion have taken a worthy place in the market. "After one and a half or two years of testing" Metaclay "has signed agreements with all Russian tube manufacturers" - provides information RUSNANO managing director, curator Andrew bitter. At the end of 2014 revenues increased more than five times and reached 2.15 billion rubles. The company managed to occupy 20% of the Russian market of polymers for corrosion protection of large diameter pipes. Himself Shtepa sure "Metaclay" will not stop there: before the end of the year the company will launch a new production line and increase the capacity of the plant up to 85 th. Tons per year of polymer coatings. And recently it became known that most of the gas pipeline "Power of Siberia" will be built with the use of nanostructured polymer coating of Russian production - put the pipe OMC, CTRP, TMK, OMZ and "Titus." So now the plant does not only work in three shifts, but also to buy new equipment.

According to Sergei Shtepa, the company is preparing to move from import substitution to importooperezheniyu - by its own scientific and technological laboratory in Moscow. Indeed, "Metaclay" is ready to offer the market new solutions. For monolayer nanocomposite coating can improve the performance of large-diameter pipe production at steel mills and reduce costs for laying new pipelines. Another development of the company - a polymer replacing natural bitumen - improve the quality and extend the life of the pavement.

"Power of the Siberia" grows Rybinsk equipment

06/05/2015

JSC "UEC - Gas Turbines" (part of the United Engine Corporation State Corporation Rostec) will produce gas pumping units (GPU) for Chayandinskoye field of "Gazprom".

The company signed a contract to supply four GPA unit capacity of 25 MW for Chayandinskoye oil and gas field, which is engaged in the development of "Gazprom dobycha Noyabrsk." The equipment for the station is planned to put in the first quarter of 2016, and its commissioning is scheduled for 2017. The general designer is JSC "VNIPIgazdobycha." It is planned to put two similar GPA for the second phase of the project.

The gas pumping units hangar used performance drive PS-90GP-25 (production - OJSC "Perm Engine Company", the development - of "Aircraft Engine"). Centrifugal compressors with magnetic levitation will make the company "REP Holding".

Gas from the field will be fed into the pipeline "Power of Siberia" for supplies from Yakutia in the Primorsky Territory and the Asia-Pacific region. "Power of the Siberia" will become a common gas transmission system for the Irkutsk and Yakutia gas production center and will transport gas through these centers Khabarovsk to Vladivostok.

In addition to the gas-compressor units the company "DCS-Gas Turbines" delivers on Chayandinskoye field power stations with a unit capacity of 2.5 MW. The main purpose of the equipment - providing electric energy infrastructure construction field before using.

Objects everything Chayandinskoye condensate field located in the underdeveloped areas of the Republic of Sakha Yakutia.Energy sources required power or electricity network in more than 200 km from the technological platforms. To provide electricity infrastructure facilities oil rim NGKM build its own power plant (ESN) to work offline. "UEC-Gas Turbines" put 7 pieces GTPP-2.5 in the first stage of construction ESN, in the second stage - two more units of this equipment.

JSC "UEC - Gas Turbines" (until April 2, 2014 - JSC "Saturn - Gas Turbines") - integrator and supplier of highly integrated power equipment for the needs of JSC "Gazprom", energy companies, utilities, oil and gas companies, energy-intensive industries . Open Joint Stock Company "UEC - Gas Turbine" is the parent company of JSC "United Engine Building Corporation" for the production of energy and gas pumping units and complex construction of power generation.

JSC "United Engine Building Corporation" (part of the State Corporation Rostec) - integrated structure, specialized in the development, serial production and maintenance of engines for military and civil aviation, space programs and the Navy, as well as the oil and gas industry and energy. One of the priorities of the APC is to implement programs of development of the industry with the introduction of new technologies that meet international standards. Proceeds of the holding in 2013 amounted to 158.9 billion rubles.

State Corporation Rostec  - Russian corporation, established in 2007 to promote the development, production and export of high-tech industrial products for civilian and military purposes. It comprises more than 700 organizations, of which currently 9 formed holding companies in the military-industrial complex, and 5 - in civilian industries, as well as 22 direct control of the organization. The portfolio includes Rostec such famous brands as AVTOVAZ, KAMAZ, Russian Helicopters, VSMPO-AVISMA Corporation, etc. Organizations Rostec located on the territory of 60 subjects of the Russian Federation and deliver products on the market more than 70 countries. Revenue Rostec in 2013 amounted to 1.04 trillion rubles. Tax payments to budgets of all levels exceeded 138 billion rubles.

Putin ratified the agreement on gas supplies to China on the "Power of Siberia"

Russian President Vladimir Putin signed the law on ratification of the agreement with China on gas supplies on the "eastern" route. The text of the law is posted on the portal of legal information on Saturday, May 2.

The agreement between Russia and China was signed in 2014. The contract amount calculated for 30 years and provides for the supply of 38 billion cubic meters of gas per year is $ 400 billion. In March this year, an agreement on gas supplies by pipeline "Power of Siberia" was approved by the Russian government.

The agreement provides that the parties shall encourage the use of national currencies in the calculations of Russia and China. They also pledged to create their authorized organizations necessary tax conditions and assist in the expansion of cooperation between "Gazprom" and the Chinese National Petroleum Corporation (CNPC).

Construction of gas pipeline "Power of Siberia" was launched in September of last year (in April 2015 the head of "Gazprom" Alexei Miller promised that the construction will take more than six years).

The project is designed to transport fuel from the Yakutia and the Irkutsk gas production centers in China and the Far East of Russia. The base for the creation of the Yakut center is Chayandinskoye oil and gas field with reserves of about 1.45 trillion cubic meters of gas and about 93 million of liquid hydrocarbons.

18:24, 2 May 2015 

Omsk pipe pipeline will become part of "The Power of Siberia"

 Tubular products Omsk company has been certified in "Gazprom" and can be used in the construction of the concern. In particular, one-piece bent pipes are ideal for the construction of the gas pipeline "The Power of Siberia" of Yakutia in China.

This week, representatives of the Ministry of Industry, Transport and innovative technologies in the region visited the Omsk LLC "Special technology" at the sites which host the new production - "SPE" Spetsteh. '" Part of pipe production company has managed to be certified according to the standards of "Gazprom". Such a procedure is a prerequisite for inclusion in the roster of equipment and technology to be used at the facilities of OAO "Gazprom". "It is possible that it will deliver the items Omsk for the project" The Power of Siberia ", - told in the Ministry of Industry of the region.  - Now they are building long lines, and only want direct pipe. And when will the construction of pumping stations need to bend, seamless, are what produce only in Omsk. " In the production of pipe parts, the company uses the method of induction heating, making possible to get away from the welding process of individual segments, due to the integrity increases the reliability elements. This difference Omsk products and plan to use as an argument to "Gazprom". The main gas pipeline "The Power of Siberia", whose construction has already begun, will stretch from Yakutia in China. Power gas transportation system - 38 billion cubic meters of gas per year with the possibility of increasing to 64 billion cubic meters. The pipeline - 4 thousand. Kilometers. According to RIA "Novosti" , the timing of the pipeline will not exceed six years. "The minimum short-term entry of gas transmission pipeline capacity" Power of Siberia "and the supply of gas, respectively - four years, a maximum of six years", - quotes the head of "Gazprom" Alexey Miller edition. It is known that the gas monopoly has already held a number of tenders for the purchase of pipes for pipeline totaling 67.7 billion rubles. The total construction cost is estimated at about 800 billion rubles in 2011 prices. Help Omsk company expects to participate in the construction of "Gazprom" signed by the regional government through the "road map". In the first phase of its implementation monopolist approved a list of Omsk proposals of interest to the "Gazprom", including 248 points. Now the enterprises themselves certify and certify their products, which is a prerequisite for participation in tenders of "Gazprom". According to the Government of the Omsk region, already in the first year of the "road map" for the delivery of Omsk Mechanical Engineers "Gazprom" has increased by 60%.