Pipeliners

IRKUTSK, September 21 (RIA Novosti) - The decision on whether eastern Russia and China or European Russia will receive Kovykta's natural gas (Siberia) supplies will depend on the prospects of sales, the Russian economy minister said Wednesday. German Gref said this following a conference on the destination of the natural gas produced at the Kovykta field, 450km northeast of Irkutsk. Gazprom spoke in favor of European Russia, where the national gas pipeline system is situated. "Gazprom has been offered a 50%-share in the project," Gref said. The Kovykta natural gas field has an estimated capacity of 1.9 trillion cu m. Rusia Petroleum, a TNK-BP subsidiary, has the license to develop the gas field. Gref said he had not determined his stance on the issue yet. "It [his position] will hardly depend on subjective factors. It will rather be based on sales prospects," the minister said. "If it is China or Korea - fine. If it is the domestic market - even better." Gazprom's argument is that in eastern Russia, Kovykta gas will hardly be able to rival gas produced on Sakhalin in terms of prices. "Sakhalin gas reserves were underestimated, they are much bigger, and investors now intend to increase the capacity to 50-55 billion cu m, instead of the earlier estimated 30 billion cu m," Kirill Androsov, the head of a ministry department said. Gref also said he hoped Russia would suffer no gas shortages. "However, Gazprom will have to meet substantial obligations to increase exports in 2010," he said, adding it would require a surge in gas production.