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Gazprom cancels $2.15 bln tender for construction of Power of Siberia gas pipeline stretch

December 29, 2015, 20:09 UTC+3 MOSCOW
Last week, Gazprom canceled two tenders for construction of the Power of Siberia stretches for the total length of 348.1 km
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© Igor Ageyenko/TASS

MOSCOW, December 29. /TASS/. Gazprom" has canceled the tender for the construction of 822 km of the Power of Siberia gas pipeline for the sum of 156 bln rubles ($2.15 bln), according to the company’s procurement documents obtained by TASS.

Last week, Gazprom canceled two tenders for construction of the Power of Siberia stretches for the total length of 348.1 km.

In November, Gazprom announced tender for the construction of four sections of the pipeline Power of Siberia for a total length of 822 km in the amount of 156 bln rubles.

The lot included contracts for construction of four stretches: Lensk-Compressor station-1 Saldykelskaya, Saldykelskaya - compressor station-2 Olekminsk, Olekminsk- compressor station-3 Amginskaya and Amginskaya - compressor station-4 Nimnyrskaya.

The construction was to involve subcontractors from small and medium-sized businesses.

Head of Russia’s Federal Antimonopoly Service Igor Artemyev criticized the tender of Gazprom saying he was to report on the situation to Russian President Vladimir Putin.

The Power of Siberia is a gas transportation system to deliver gas the Yakutsk and Irkutsk gas production centers in Siberia to Russia’s Far East and China. The pipeline’s capacity will be 61 billion cubic meters per year. The pipe’s total length is 3, 968 km. The estimated construction cost is $21.3 bln. The pipeline route will run along the existing route of the Eastern Siberia - Pacific Ocean oil pipeline, though swampy, mountainous and seismically active areas.

On May 21, 2014 Gazprom and China National Petroleum Corporation signed a 30-year contract on Russia's pipeline gas supplies to China in the amount of 38 billion cubic meters of gas per year. The contract is worth $400 bln.

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