Power of Siberia (Sila Sibiri)

Transneft and Gazprom plan to create working group on extension of ESPO’s capacities and construction of power of Siberia

Transneft and Gazprom plan to create a working group to interact during the extension of the Eastern Siberia - Pacific Ocean oil pipeline’s capacity and the construction of Power of Siberia gas pipeline, the vice president of Transneft, Alexei Sapsai stated.
He explained that the new gas pipeline will be constructed almost in parallel with the ESPO pipeline (at a distance of a hundred km from it in some places, and 1 km – in others). "In any case, it will run parallel, and there are substantial developments of this route and its construction. In particular, existing road infrastructure can be used. In addition, Transneft, having a considerable experience in construction of pipelines in difficult climatic conditions, has already been providing consulting assistance in the implementation of the Power of Siberia pipeline project," - said the company’s vice-president.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Rosneft to force Sila Sibiri to work for it.

According to the records of the Presidential Commission meeting on the Fuel and Energy Sector held back in June, but only recently appeared in the public domain, the Russian President, Vladimir Putin ordered the exploration of the possibility of providing the right to independent gas producers to export their products from the new fields in East Siberia and the Far East before September 1st, 2014. The head of the state also instructed to consider the possibility of their participation in the construction of the gas transmission network in Eastern Siberia and the Far East.
Let me remind you, that after Gazprom stated the Power of Siberia pipeline which is under construction, which was intended for the energy supplies from the fields in Eastern Siberia to the Far East and China, calculated only on the resource base of the corporation itself, Rosneft has expressed its intention to seek the access for the independent companies to the gas transmission network. As I wrote earlier, it is not so much about the access to the Power of Siberia, but about further liberalization of the gas market and the opportunity for independent producers to export it or demand the same or better terms of this raw materials purchase from Gazprom, if it will act as an intermediary when it is exported. Judging by the statements of Gazprom the gas transportation facilities in Sakhalin projects are not enough for both companies. In this regard, I think the only question is which of the two companies will take the burden of the additional investment in the infrastructure.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

The issue of Gazprom’s additional capitalization to be settled until September 1st

The President of Russia V. Putin has ordered the Government to work out the issue of Gazprom’s additional capitalization for the amount necessary to develop the gas transport infrastructure in the eastern direction taking into account the Russian natural gas exports and the necessity to develop the gasification in the regions of the Eastern Siberia and Far East.
The deadline for the execution of this order is September 1st 2014.
The Eastern Gas Program was approved in September 2007. The Government ordered Gazprom OJSC to coordinate the activity on its realization.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

"Gazprom" to spend $ 1 billion on the pipes for the "Southern Corridor".

"Gazprom" will select the winners of the tenders worth about $ 1 billion to supply the pipes for the eastern part of the pipeline that will link the backbone network of the monopoly with the "South Stream" pipeline – the pipeline across the Black Sea to Europe, bypassing Russia's opponent in the "gas war" – Ukraine – in a week.
The tender involves all the key Russian pipe producers who built new capacities worth billions of dollars specifically for the projects of "Gazprom".
"Gazprom" needs the pipes procured for the eastern branch of the Southern Corridor - a system of pipes that connects the single gas transportation system of the Russian Federation with the "South Stream" pipeline, three sources in the Russian pipe and gas industry told Reuters. The branch with the length of 1,626 kilometers will be built from the Nizhny Novgorod region to Krasnodarsky Kray.
The representative of "Gazprom" declined to comment on what project the monopoly buys pipes for

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

The Russian oil and gas companies are building less.

By the end of 2013 the contracts market for the construction of oil and gas infrastructure fell by almost 23% to 691.935 billion roubles in Russia, according to the data of SPARK-Interfax and reports of the companies. Major construction ended, and the new projects such as the "Power of Siberia" pipeline were delayed because of the long negotiations with China. The companies owned by Ruslan Baysarov, Arkady Rotenberg and Gennady Timchenko, are looking for the new customers, but still more than half of their orders come to them from "Gazprom".
In 2013 "Stroygazkonsalting" kept the leadership among the oil and gas contractors (at the beginning of June it became known that the control of the company passed from Ziyad Manasira to Ruslan Baysarov), despite a drop in revenue by 33% to 259.7 billion roubles in 2013. Arkadiy Rotenberg’s "Stroygazmontazh" followed the leader with 226.6 billion roubles. "Stroytransgaz", 50% of which businessman Gennady Timchenko consolidated at the end of 2013, rounds out the three leaders of the group: the company literally burst onto the market, increasing the revenue for the year by 63% to 83.7 billion roubles.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Gazprom prepares reserves to fill gas transportation system Power of Siberia

The company Gazprom geologorazvedka has started drilling the exploration wells at the Kovykta gas condensate field (the Irkutsk region). The field will eventually become one of the basis fields to fill the gas transmission system Power of Siberia.
The aim of the operations is to clarify the structure and volume of hydrocarbon reserves, the detalization of the field’s geological model, the report notes. Currently, the drilling of two exploration wells is carried out, in 2015, it’s scheduled to begin the drilling of four more wells.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Who to get the new sites in the Irkutsk region?

Rosnedra will hold an auction for the right to use two subsoil sites in the Irkutsk region. These sites may be interesting for oil companies, which expect to increase their supplies through the ESPO pipeline, and later, perhaps, to increase the transportation of gas via the Power of Siberia pipeline.
The Chastinsky site with estimated resources (D1 + D2) of 20.3 million tons of oil and 38 billion cubic meters of natural gas (as of the beginning of 2009), as well as the Chechuysky site with resources of 22.2 million tons of oil and 32.7 billion cubic meters of gas are put up for auction. The initial payment for the first site is set in the amount of 21.6 million rubles, and for the second one - 44.2 million rubles. However, the cost of licenses will increase significantly during the auction. 2-4 billion mightl be able to be earned for each of them.

Full text available to premium subscribers only.

Buy full access for 24 hours now

or

Request a quote to subscribe for a longer period

Oil and Gas, Metals and Mining, News from Russia and neighbouring countries
42a Pushkina Street; Ufa, Bashkortostan 450076; Russia
E 54° 43.48836" N 55° 55.52346"
Telephone: +7 927 303 00 25

Theme by Danetsoft and Danang Probo Sayekti inspired by Maksimer