Power of Siberia gas pipeline to cost $20 billion

770 billion ($20.6 billion) to build, according to a memo for Russian President Vladimir Putin’s forthcoming visit to Yakutsk.

This The Power of Siberia gas pipeline from Russia to China will cost approximately RUB includes RUB 283 billion of investment in the construction of the pipeline in the Republic of Sakha (Yakutia).
The pipeline is part of Gazprom’s Eastern Gas Programme, which will tap gas reserves in Eastern Siberia for transport to China.
Gazprom and China National Petroleum Corp. signed a deal in May for delivery of 38 billion cubic metres per year to Chinese consumers. Power of Siberia will have a capacity of 61 bcm/y.
The pipeline will stimulate development in the region, Putin said on Monday at a ceremony to mark the beginning of construction.
“This gives us the opportunity to push along development in this region, and indeed to the metallurgical industry, pipeline industry and chemical industry across the whole country,” he said. Construction of the Chinese segment of Power of Siberia will begin in the first half of 2015, Chinese Vice Premier of the State The Power of Siberia gas pipeline from Russia to China will cost approximately RUB 770 billion ($20.6 billion) to build, according to a memo for Russian President Vladimir Putin’s forthcoming visit to Yakutsk.
This includes RUB 283 billion of investment in the construction of the pipeline in the Republic of Sakha (Yakutia).
The pipeline is part of Gazprom’s Eastern Gas Programme, which will tap gas reserves in Eastern Siberia for transport to China.
Gazprom and China National Petroleum Corp. signed a deal in May for delivery of 38 billion cubic metres per year to Chinese consumers. Power of Siberia will have a capacity of 61 bcm/y.
The pipeline will stimulate development in the region, Putin said on Monday at a ceremony to mark the beginning of construction.
Council Zhang Gaoli said at the ceremony.
The Power of Siberia system will cover 3,968 km, about 2,000 km of which will run from the Chayanda oil and gas condensate field to Blagoveschensk, including 1,350 km through Yakutia. It will also include the 791 km Kovykta-Chayanda section that will connect the Irkutsk and Yakutia gas production centres.
The Chayanda-Blagoveschensk section of the pipeline will be built first, and is scheduled to come onstream at the end of 2018. The second phase will connect the Irkutsk production centre with Yakutia.
The company signalled in June it plans to spend $55 billion on the Eastern Gas Programme, which includes pipeline construction, field development and petrochemical construction. Analysts at VTB Capital said this was a conservative projection and estimated costs of $80 billion.
Other analysts are more positive. “It’s not that unreasonable,” one Moscow-based analyst told Interfax regarding the RUB 770 billion figure. While cost overruns are a risk, this is true for any large project, the analyst added.
The construction of the first phase of Power of Siberia will employ about 12,000 specialists, while the pipeline’s operation will require about 3,000 staff

770 billion ($20.