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Power of Siberia gas pipeline to cost Rub 770 billion

MOSCOW, August 31, /ITAR-TASS/. The cost of the Power Siberia main gas pipeline will reach about 770 billion roubles, say materials for the Monday ceremony of connecting the first chain of the pipeline that will run across Yakutia. Russian President Vladimir Putin will attend the event.

The gas pipeline will become the common gas transportation system for the Yakutsk and Irkutsk gas production centres. Gas through the pipeline will be exported to China and supplied to Russia’s internal market. The total length of the pipeline will reach 3,968 kilometres. At the first stage the pipeline’s section from the Chayanda oil and gas condensate field to Blagoveshchensk will be built.

The Chayanda deposit is unique in terms of reserves volume: some 1.45 trillion cubic metres of gas and 93 million tonnes of liquid hydrocarbons, the materials say. The field’s annual production capacity is expected to reach 25 billion cubic metres of gas and at least 1.5 million tonnes of oil.

The development of the gas deposit of the Chayanda field will be launched in 2015. The gas production start is scheduled for late 2018, and first gas export to China - for 2019.

In May 2014, Russia’s natural gas monopoly Gazprom and China National Petroleum Corporation (CNPC) singed a 30-year contract on the supply of Russian gas. The total cost of the contract is some 400 billion U.S. dollars, and the supply volume - 38 billion cubic metres of gas annually.

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