September 3, 2008

Gazprom Looking At Costliest Pipeline

By Anonymous

Gazprom will shortly set a record in terms of cost for a gas pipeline project in Russia. Preliminary estimates of the 2,035-km project range from $21-24 billion - depending on the number of compressor stations. The gas will flow from Sakhalin- KhabarovskVladivostok, ending at the port. Construction is expected to start in September and should be finished by late 2011. The pipeline is projected to have a capacity of 36.5 Bern annually. Gazprom and Rosneft signed an agreement of cooperation enabling Gazprom to buy a 25% plus one share stake in Daltransgas from Rosneft, with an access to free capacities of the. Gazprom and Rosneft will jointy conduct negotiations with the Sakhalin I consortium concerning Gazprom's purchase of 1.5 - 2 Bern of gas at the agreed price to supply to the Primorsky Krai. The parties also decided to jointly continue talks with the consortium in relation to the acquisition by Gazprom of the Phase 2 Sakhalin I project to supply Russia's Far Eastern Federal District regions with gas.

Gazprom said there is a possibility of additional gas production within the project to supply the Primorsky Krai with gas. Rosneft will carry out the Okha - Komsomolsk-on-Amur gas pipeline inspection with an engagement of experts to assure the increase in the pipeline capacity to the design level of 4.5 Bcm/a. Copyright Oildom Publishing Company of Texas, Inc. Aug 2008

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