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" twice reduced the price of the tender for the preparation of 585 km of "Power of Siberia"

The tender for this work was announced in December with a starting price of 1.631 billion rubles, "Gazprom" has considered the application of five candidates - and announced a new tender with a price 724 600 000 rubles, breaking the track on three lots

Interfax

28/01/2015

Photo: Maxim chair / Gazette

" Gazprom " again announced a request for proposals for the preparatory work for the construction of the pipeline linear objects " Power of Siberia. " We are talking about areas Lensk  - COP-1 " Saldykelskaya "207,7-301,1 km, COP-1 "Saldykelskaya "- CS-2 " Olekminsk "301,1-555,8 km, KS-2 " Olekminsk "- COP-3 "AMGA "555,8-792,3 km - only 585 km. 
The first tender for this work was announced on 19 December. The starting price was set at 1.631 billion rubles. VAT. Applications filed five contenders: JSC " Sakhatransneftegaz ", JSC " Baikal road construction company "Company " Neftegazstroy ", JSC " Stroytransgaz ", LLC " Stroygazkonsalting . "January 19, after considering their proposals, it was decided to abandon the purchase. 
January 27 published a new purchase on the same object. Now it is presented not one, but three lots. Their total starting price reduced by more than half - up to 724.6 million rubles. VAT. The volume of work in hectares in the first and second purchases coincide. However, the new purchase of the amount of work less detailed - does not provide information on the number of trees to be cut down to be removed stumps, reports " Interfax ".
Tender procedure for the construction of " The Power of Siberia "in the first section ( Chayandinskoe NGKM - Lensk) won the oilfield services company from Tatarstan LLC " TNG-Group " ( previously - JSC " Tatneftegeofizika "). The contract amount was 606.3 million rubles. Work is expected to be completed by May 2015 


" Gazprom "has also canceled the purchase at the stage of design and survey works for the supply of 32 MW GPA for COP-1 " Saldykelskaya " " Power of Siberia. " Since this purchase was carried out at the stage of R & D, for it has not been established starting price. Earlier " Gazprom "has held several similar purchases by suppliers as obscure intermediary structures. 
Also, " Gazprom "announced the first major tenders for the construction of " Power of Siberia ": objects pioneer exit Amur GPP at 5.131 billion rubles., construction of access roads to the Chayanda ( 2.239 billion rubles.), common mineral resources in quarries on Chayanda ( 5218000000 rub.).
 

Strategy of Power of Siberia,

Gazprom is implementing the strategic task aimed at building up the upstream sector. Promising fields are to be developed simultaneously with the comprehensive and synchronized upgrade of gas production, transmission, processing and storage capacities. In particular, the Northern Tyumen Regions (SRTO) – Torzhok gas trunk line is being built today in order to withdraw additional gas volumes from the Nadym-Pur-Taz region.
The SRTO – Torzhok gas pipeline will be a crucial element of the multi-line Urengoy – Nadym – Peregrebnoye – Ukhta – Torzhok gas transmission system which is currently operational. The project is primarily targeted at supplying more gas to consumers in Northwestern Russia and securing gas exports via the Yamal – Europe gas pipeline.

Facts and Figures

The gas pipeline route runs from the Urengoy field in Western Siberia to the town of Torzhok – a node of the Russian Unified Gas Supply System (UGSS).
13 compressor stations (CS) totally generating 968 MW are located along the 2,200-kilometer gas pipeline. Its annual design capacity varies between 20.5 and 28.5 billion cubic meters at various sections.
The pipeline construction started in 1995. Its linear part was brought on stream in 2006.

Current Status

10 CS were constructed with 743 MW of aggregate capacity as at December 31, 2009. Another 3 CS will be brought on stream in parallel with the Bovanenkovo – Ukhta gas pipeline commissioning in 2012.

Gas Transmission system of Power of Siberia,

The Power of Siberia will become a unified gas transmission system (GTS) for the Irkutsk and Yakutia gas production centers and convey gas from these centers to Vladivostok via Khabarovsk.
The Yakutia – Khabarovsk – Vladivostok gas trunk line will be constructed at the first stage, and at the second stage the Irkutsk center will be connected to the Yakutia center by the gas pipeline.
The GTS route will run in parallel with the Eastern Siberia – Pacific Ocean operational oil pipeline, thus enabling to streamline the infrastructure and power supply costs. The GTS route will pass, interalia, through swampy, mountainous and seismically hazardous areas.
The bulk of pipes used in the construction will be domestically manufactured. Some 11,700 experts will be engaged within Phase 1 of the Power of Siberia project and some 3,000 employees will ensure the pipeline's operation.

The GTS received its name following the contest results.

Source of supply of Power of Siberia,

The pipeline will be fed from the Chayanda oil and gas field in Yakutia.^[11] The gas field is expected to be launched in 2019.^[5] Later the Kovykta field, which would come operational by 2021, will be connected to the pipeline.^[5][12] Independent producers may supply up to 25 billion cubic metres per annum (880×10⁹ cu ft/a) of natural gas.^[13]

Route of Power of Siberia

The 3,200-kilometre (2,000 mi) pipeline will start from the Chayanda oil and gas field in Yakutia. It will partly run within an integrated corridor with the second stage of Eastern Siberia-Pacific Ocean oil pipeline.^[8] In Khabarovsk, it will be connected with the Sakhalin–Khabarovsk–Vladivostok pipeline. Together, these pipelines will feed a planned LNG plant, which will produce liquefied natural gas for the export to Japan, and a planned petrochemical complex in Primorsky Krai.^[8][9][10] Branches toward Northern China are envisaged.

In addition, the project includes 800-kilometre (500 mi) pipeline from Irkutsk to Yakutia.

Technical Description of Power of Siberia

The pipeline is expected to cost 770 billion roubles and the investment in the gas production is 430 billion roubles.^[1] It is expected to be operational by 2019.^[5] Capacity of the 56-inch (1,400 mm) pipeline would be up to 61 billion cubic metres per annum (2.2×10¹² cu ft/a) of natural gas.^[6] 38 billion cubic metres per annum (1.3×10¹² cu ft/a) would be supplied to China.^[5][7]

History of power of Siberia

On 29 October 2012 president Vladimir Putin instructed the general manager of Gazprom to start the construction of the pipeline.^[1] On 21 May 2014, Russia and China signed a 30-years gas deal which was need to make the project feasible. Construction was launched on 1 September 2014 in Yakutsk by president Putin and Chinese deputy premier minister Zhang Gaoli.^[2][3] Construction of the pipeline from Vladivostok to China is expected to start in 2015.^[4]

Power of Siberia

The Power of Siberia (Russian: Сила Сибири) pipeline (formerly known as Yakutia–Khabarovsk–Vladivostok pipeline) is a natural gas pipeline under construction in Eastern Siberia to transport Yakutia's gas to Primorsky Krai and Far East countries.

Southern Corridor gas pipeline system

Significance

South Stream
 Enabling to supply additional volumes of natural gas to Russia’s central and southern regions, the Southern Corridor gas pipeline system will develop industries and utilities, intensify gasification and ensure uninterrupted gas supplies into the South Stream gas trunkline.

Major features

What are the features of offshore production

Total length of the gas transmission system will account for 2,506.2 kilometers. The project requires that 10 compressor stations  are constructed with total capacity of 1,516 MW. The annual throughput of the Southern Corridor gas pipeline system will amount 63 billion cubic meters. The project period is from 2010 to 2017.
The project is executed within 8 Russian Federation constituents: the Nizhny Novgorod, Penza, Saratov, Volgograd, Voronezh, Rostov Regions, the Republic of Mordovia and the Krasnodar Territory.

Construction phases

The project is divided in two phases.

Southern Corridor gas pipeline system construction phases

Phase 1 – the Western Route – stipulates construction of a gas transmission system from the Pisarevka CS (Voronezh Region) to the Russkaya CS (Krasnodar Territory). Intended to become the main compressor station of the South Stream’s offshore part and the most powerful one in the world, the Russkaya CS will be built in the Anapa District (Krasnodar Territory).
The Russkaya CS will be the Southern Corridor end point and the South Stream start point at the same time. Rated at 448 MW, the station will provide for building gas pressure up to 28.45 MPa. It will make possible to carry blue fuel 900 kilometers without any additional technical means.