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Tuesday, September 30, 2008

Far East pipeline for Sakhalin gas could come online in 2011

KHABAROVSK, September 30 (RIA Novosti) - A pipeline to pump natural gas from Sakhalin Island off Russia's Pacific Coast to the country's mainland and the Asia-Pacific region could come online in 2011, Gazprom said Tuesday. "In accordance with an instruction from the Russian government, this gas pipeline is scheduled to become operational in the third quarter of 2011," said Alexander Ananenkov, deputy chairman of the Gazprom management committee. Addressing a Far Eastern economic forum, Ananenkov said the Sakhalin-Khabarovsk-Vladivostok pipeline would be developed stage by stage, taking into account the available capacities in the Khabarovsk Territory. Initially, gas from the operational Sakhalin-I and Sakhalin-II oil and gas projects could be supplied to the gas pipeline, the official said. The Sakhalin I project is operated by Exxon Neftegas Limited, a subsidiary of U.S. oil major Exxon, and has recoverable reserves estimated at 315 million metric tons (2.3 billion barrels) of oil and 485 billion cubic meters of natural gas. The Sakhalin II project, in which Russian gas monopoly Gazprom holds a controlling stake, has estimated reserves of 150 million metric tons (1.1 billion barrels) of oil and 500 billion cubic meters of natural gas. Sakhalin is some 10,000 km (6,200 miles) east of Moscow. "The gas pipeline will operate at full capacity with the start of gas production under the Sakhalin-III project expected in 2015-2016 and the system's further development will also be linked with the gas supplies from the Chayanda gas field in Yakutia," Ananenkov said. The Sakhalin-III oil and gas project's estimated reserves in the Sea of Okhotsk total over 800 million metric tons (5.86 billion barrels) of oil and more than 900 billion cubic meters of gas. The project includes the East-Odoptinsky, Ayashsky, Venin and South-Kirinsky blocks. The Chayanda field in Yakutia in northeast Russia is intended to supply natural gas to Asia-Pacific countries, in particular China.

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