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Power of Siberia strengthens state support - EastRussia | Success stories






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"Strength of Siberia" is strengthened by state support

Chronicles of the Far East megaproject № 1 - "The Power of Siberia"

In September, 2015 of the year launched an integrated plan, in accordance with which state support was received by the world's largest gas transmission project - the construction of the Power of Siberia gas pipeline.

"Strength of Siberia" is strengthened by state support
The plan was adopted in accordance with the Decree of President Vladimir Putin "On measures to implement the agreement between Russia and the PRC on cooperation in the supply of natural gas from the Russian Federation to China along the" eastern "route." “The Power of Siberia” is impressive not only for its scale, promising geo-strategic and economic prospects, but also for its unique engineering solutions: a significant part of the gas pipeline will pass through the most inaccessible areas - rocky terrain, swamps and taiga.

The new gas pipeline will stretch more than 4 thousand kilometers. It is planned to dock in the future with the existing "pipe" from Khabarovsk to Vladivostok, which is part of the Sakhalin-Vladivostok GTS. The annual capacity of the "Force of Siberia" is 61 billion cubic meters of gas.

It was decided to start the construction of a powerful GTS in May in 2015, when Gazprom and the Chinese company CNPC signed 30-year-old Contract volume of 300 billion dollars for the supply of 38 billion cubic meters of gas per year. The exact parameters of the contract have not yet been disclosed, since the price formula for the supplied gas has not yet been determined. However, experts suggest that the average price will be 385 dollars for 1 thousand cubic meters - more than the average annual price of Gazprom's supplies to Europe (380 dollars).

"The strength of Siberia" draws its power from two sources: Chayandinskoye field in Yakutia with gas reserves of 1,2 trillion tons and Kovykta in the Irkutsk region with reserves of 1,5 trillion tons.

It is planned that by the year 2018 the first stage of the gas pipeline from Chayandinskoye field to Blagoveshchensk (over 2,2 thousand km) will be built, then the Yakut field will be connected to the Irkutsk Kovykta pipeline more than 700 km long. Docking with the Sakhalin - Khabarovsk - Vladivostok GTS is even more than 1 thousand km, although in the longer term. To optimize costs, the "Power of Siberia" will be conducted along the existing East Siberia-Pacific Ocean oil pipeline (ESPO), which will optimize the costs of infrastructure and energy supply.

“The Power of Siberia” should give a powerful impetus to the development of a vast territory between Western Siberia and the Far East. "Pipe" will pass through the southern regions of Yakutia, and the route is chosen so as to gasify the maximum possible number of settlements. According to Yury Shafranik, Chairman of the Council of the Union of Oil and Gas Producers of Russia, this project will “literally revive the giant distances” between relatively well-developed territories in the Far Eastern Federal District and Western Siberia. New gas production and residential settlements will appear around the gas fields, infrastructure will be developed, new jobs will be created for specialists.

For Russian companies in the gas sector, this is a chance, which is not expected in the near future. That is why there is already intense internal competition for gas supplies to China on the "Siberian Force". The project itself is the brainchild of Gazprom, it is this company in this case that acts as a monopolist. However, giants like Rosneft, Surgutneftegaz and the largest independent gas producer NovaTEK have already raised the issue of canceling Gazprom's monopoly on gas exports by creating a consortium for the Siberian Force. Decisions have not yet been made, the discussion continues.

However, Gazprom maintains its positions for the time being firmly. In response to Rosneft's statements about its readiness to supply about 2020 billion cubic meters of gas from its eastern fields to the XIUMX for 16, Gazprom CEO Alexei Miller made it clear that there is no room for independent producers in the project. Gazprom has already invested about 55 billion dollars of complex investments in the construction of the pipeline, the creation of infrastructure, the preparation for the launch of Chayanda and Kovykta. Moreover - in the struggle for the right of sole ownership of the new route, the gas giant even refused to capitalize.

"The Power of Siberia" has significantly revived production at industrial enterprises in Russia, which produce metal, pipes, heavy construction equipment and much more. Gazprom has already purchased pipes for the Eastern Gas Program at 34,6 billion. In total, the project will require 2,5 million tons of pipes, of which 1,7 million should be supplied in 2014-2018 years. Soon the increase in sales will be felt by machine builders, in particular KamAZ.

The construction of the gas pipeline will also contribute to solving social problems. Only in Yakutia it will somehow involve about three thousand specialists - this is 10% of all employed in the gas industry of the Far Eastern Federal District. Gazprom already organizes training of personnel, including those from Yakutia, in Russian specialized educational centers, and stimulates the development of new educational programs. It is assumed that only about 15 thousand people will find work for themselves on the construction of the "Siberian Force".

In the long term, Chayanda and Kovykta should have an effect not so much on gas exports as on the development of the petrochemical sector. These deposits are rich in helium and ethane (up to 200 million tons of ethane, 73 million tons of propane, 44 million tons of butane). Especially important is the presence of helium: the world's resources of this raw material are gradually falling, and the demand for it is growing exponentially. The reserves of helium of the Kovykta field are estimated at 2,3 billion cubic meters, and the Chayandinskoye deposit is estimated at 1,4 billion. Development of these resources will help Russia reach the leading positions in the world market. Now the price for deficit helium is dictated by the United States, but at least in the next 10 years Russia has a chance to tip the scales in its favor.

In order to isolate valuable components of natural raw materials, Gazprom will build a gas processing plant in the Amur Region (in Belogorsk, near Blagoveshchensk), where they will process gas to produce helium and ethane. Start of construction is scheduled for 2015 year, completion - on 2025 th. The total cost of the project is estimated at about 620 billion rubles. The gas chemical plant for the production of monomers and polymer production is ready, jointly with Gazprom, to build Sibur, which has already been signed by the relevant document. According to representatives of Gazprom, there are preliminary agreements on the sale of helium for 20 years with five largest players in the global helium market: French AirLiquide, German Linde, Japanese Matheson and American Praxair and AirProducts.

The "Force of Siberia" project, according to experts, so far has more "a sight for the future" taking into account its geopolitical significance, it is still difficult to speak about its direct commercial payback. However, even in the near future, the complex effect that it will provide to the Far East and Siberia will have a beneficial effect on all spheres of life of these territories, in many respects will help to overcome the crisis phenomena in the Far Eastern economy and the social sphere.
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