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.

Gazprom to substitute engineering supplies from pro-sanctions countries

Published time: February 17, 2015 10:22
Edited time: February 17, 2015 19:02

Gazprom, Russia’s largest gas company plans to expand the program of import substitution by no longer buying metal and engineering products from more than 400 foreign firms, which could mean $2.5 billion in lost orders from Russia.

From now on metal products and machinery items, including agricultural and road construction equipment will be purchased mainly from Russian producers, “except in case the goods are not produced, or there is no counterpart, in Russia,” Vedomosti reports Tuesday referring to a Gazprom document.

The companies on Gazprom’s ‘blacklist’ include suppliers from about 20 countries. Firms from the US (Caterpillar, Motorola), Germany (Siemens, MAN Turbo), France (Schlumberger, Schneider Electric), the UK and Japan (Sumitomo, Kenwood, Kawasaki) make up more than a quarter of the companies affected, according to the document obtained by Vedomosti.

Besides the products from Western countries supporting the anti-Russian sanctions, Gazprom is considering replacing supplies from number of companies in Belarus, Ukraine, Israel, India and Argentina.

Gazprom officials have said they were thinking of looking at alternative suppliers from China or Korea that aren’t already on Gazprom’s list of foreign suppliers.

Gazprom’s purchases in foreign currency account for about 21 percent of its capital costs, according to Deputy Chairman Andrey Kruglov. Capital costs of Gazprom for 2015 will be $11.6 billion (733 billion rubles). That means almost $ 2.5 billion (or 154 billion rubles) were allocated to foreign purchases.

In early February, Gazprom created a special department for import substitution with a mission to ensure the company’s technological independence. A similar department was established by its oil subsidiary Gazprom Neft. The company says its new policy will see as much equipment as possible produced in Russia.

Experts suggest Gazprom could find it difficult, and it could cause problems with such projects as Baltic LNG, the Power of Siberia and the Turkish Stream pipelines, as there is a lack of Russian hi-tech producers.

In February Russian Prime Minister Dmitry Medvedev claimed that most machinery could be replaced with “Russian-made” equipment.

"Gazprom" announced the purchase of pipes for the "Power of Siberia" for $ 1 billion

February 17, 2015   

"Gazprom Komplektatsiya" announced a request for proposals for the supply of large diameter pipes for pipeline "The Power of Siberia" totaling $ 67.866 billion rubles. (including VAT). Delivery pipe will run throughout 2015, reports Interfax .

 The recipient of the order is LLC "Gazprom Transgaz Tomsk". Division is the customer highway construction. The total amount of purchases of more than 819 thousand. Tons. It will consist of 8 lots. Four of these weight ranges from 150 to 200 thousand. Tonnes.

 In early February, it was reported that "Gazprom" will not attract the general contractor in the construction of "Power of Siberia." The company decided to break the project into smaller lots. Earlier "Gazprom" preferred to distribute the Biggest lots.

 30 January "Gazprom" reported that potential bidders for the construction of the gas pipeline "The Power of Siberia" were 15 companies. Among them JSC "Stroytransgaz" Arkady Rotenberg. Among the potential bidders and companies' STG-AvtoTrans "," APS-West "," Argus Podvodstroy "," EVRAKOR "," APS-North "," Special Installation Argus "," Argus Swar Installation "," APS-East " "Spetsgazavtotrans", "Irkutskneftegazstroy", "Enterprise drilling", "Sibmost" and "SpetsMontazhProekt."

 In September, "Gazprom" and the Russian pipe plants have agreed on the terms of payment and delivery of pipes for the "Power of Siberia." The company has declared its readiness to advance up to 40% of pipes, and instead asked for a discount of 10% of their value. According to the analyst "VTB Capital" Alexander Donskoi, "Gazprom" will be spent on purchase of pipes and construction of a pipeline of about $ 56 billion.

 Through the pipeline "The Power of Siberia", whose length will be almost 4 thousand. Km, will be the transportation of gas from Yakutia and the Irkutsk region to other regions of Russia and China. February 17 Energy Minister Alexander Novak said that the contract for the supply of gas to China will be concluded in the coming months. "The challenge posed: do not tighten. In the coming months will finish reflect on this issue. We hope that in the next few months, the contract will be designed to the extent of signing ", - said the minister.

http://www.rbc.ru/rbcfreenews/54e34a109a7947404c6d3a48

Power Industry of Gazprom

Core business

Gazprom holds leading positions in the Russian power market. The Company’s share in the domestic electricity and heat generation is 15 and 22 per cent accordingly.
Power generation cannot be called a non-core activity for Gazprom. The Company’s strategic goal is to become a global energy company covering the whole value chain – from upstream to downstream – both for gas and liquid hydrocarbons, as well as producing a wide range of deliverables including electricity.