The Japanese consider gas pipeline to Hokkaido expedient

The  implementation of a gas pipeline construction from Sakhalin to the island of Hokkaido is economically sound. JPDO’s president, Hideo Ogawa asserted, RIA Novosti reports.

According to Agawa, it could be between 1.300 and 1.500 kilometers long and it may cost 550 billion- 700 billion yen ($7.1-9.1 billion). It has the capacity to carry 16-20 billion cubic meters of gas a year.

The chairman of the Board of Management of Gazprom, A.Miller asserted earlier that the laying of the pipeline did not make economic sense. Only liquefied natural gas from Sakhalin will be delivered to Japan. A spokesmen for Gazprom also noted that it is expensive to build a gas pipeline due to high seismic activity of the territory. Agawa has noted that the technologies in Japan guarantee seismic resistance of the pipeline. He said that the main gas pipelines were not damaged during the latest earthquakes.

JPDO’s head also asserted that the construction of a gas pipeline can be carried out using loans, attracted from structures  affiliated with the government of Japan. As for the Russian profit, it could participate in gas processing and sale afterwards.  

http://www.mineral.ru/News/50276.html

Translated by Iraida Idiyatova