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Gazprom launches construction of Power of Siberia

02nd September 2014

An inaugural ceremony was held yesterday to commission the first section of the Power of Siberia pipeline that is intended to supply China with 38 billion cubic metres of gas a year

Gazprom launches construction of Power of Siberia
Over one trillion cubic meters of gas will be supplied during a whole contractual period

Yakutsk in Eastern Russia hosted celebrations yesterday dedicated to welding the first joint of the Power of Siberia gas transmission system (GTS) meant to be a crucial element of the gas supply system being built in eastern Russia. The GTS will convey gas from the Yakutia and Irkutsk gas production centers to the Far East and China.

“Today the first joint of the unique Power of Siberia gas transmission system has been welded,” said Alexei Miller, Gazprom head. “The cutting-edge gas production and processing facility and thousands kilometers of gas pipelines will secure first gas supplies in as little as four years.

“Gazprom is entering a totally new gas market of China. In full compliance with our contractual obligations, Chinese consumers will receive 38 billion cubic meters of gas every year.

“Great in all senses, this project has boosted the development of entire industries of the Russian economy: metallurgy, pipe production and machine building. Power of Siberia opens up new opportunities for gasification of eastern Siberia and the Far East. Due to this project thousands of new jobs will be created, accommodation and social infrastructure will be constructed.

“Gazprom timely and fully performs its obligations in any area of its activity. It always ensures reliability of gas supplies to its consumers. The same will be true for the Power of Siberia project.”

The attendance was comprised of Russian president Vladimir Putin, Zhang Gaoli, first vice premier of China's State Council, Yury Trutnev, deputy prime minister of the Russian Federation and presidential plenipotentiary envoy to the Far Eastern Federal District, Alexey Miller, chairman of the Gazprom Management Committee, Wang Dongjin, vice president of China National Petroleum Corporation and Yegor Borisov, acting head of the Republic of Sakha (Yakutia).

“Once we have developed and expanded the gas pipeline network here in eastern Siberia and the Far East, we will be able to join the European part of the gas transport system to the eastern part,” said Putin.

“This offers huge advantages in terms of export opportunities and expanding the gas network in our own country because it makes it possible to ensure supplies and flows no matter what the situation in the global world markets, so that we can work wherever is more effective – in the east or in the west.”

On May 21, 2014 Gazprom and China National Petroleum Corporation (CNPC) signed the purchase and sale agreement – the biggest one in the national history – for the Russian pipeline gas supply to China. The 30-year contract stipulates gas supplies in the amount of 38 billion cubic meters of gas per year.

Over one trillion cubic meters of gas will be supplied during a whole contractual period.

Gazprom Transgaz Tomsk, a wholly-owned subsidiary of Gazprom, is a construction project owner of the Power of Siberia GTS, and VNIPIgazdobycha is a general design contractor.

The immense gas fields of Russia's East will mainly feed Power of Siberia. The aggregate gas reserves (C1 and C2) of the Chayandinskoye and Kovyktinskoye fields amount to some 3.95 trillion cubic meters. Such reserves will allow producing 60 billion cubic meters of gas per year, which is comparable with the amount of natural gas consumed by a big European country like Italy.

The gas deposit pre-development in the Chayandinskoye field will start in 2015; Gazprom will start gas production in the end of 2018. It is here where for the first time in Russia the membrane helium separation technology will be commercially applied right on the spot. This technology will make it possible to convey the required amount of helium into the gas pipeline.

Along with gas transmission and production facilities, Gazprom is going to build ones for processing multicomponent gas from the eastern fields. The first train of the Amur Gas Processing Plant to strip valuable components (helium and ethane, for instance) from natural gas will be commissioned in 2018 near Svobodny.

The areas of Power of Siberia's routing feature complex geological and climatic conditions. Therefore, it requires reliable and efficient design concepts, energy-saving technologies and state-of-the-art line pipe monitoring systems. Among such applications are home-manufactured longitudinally welded pipes made of cold resistant steel K60 with external anti-corrosion and smooth internal coating, 1,420 millimeters in diameter and 21.7 millimeters of wall thickness, designed for 100 Ata operating pressure. In the areas of tectonic faults and intense seismic activity higher than eight points the GTS will be made of high strength pipes.

In late July 2014 first pipes were delivered to Yakutia to build Power of Siberia's section from the Chayandinskoye field to Lensk. Over 120 thousand tons of pipes will be delivered in 2014. Between 2014 and 2018 the project will need more than 1.700 million tons of pipes.

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