Gazprom to Invest $287M in Sakhalin Region in 2014

The Gazprom headquarters hosted a working meeting on Tuesday between Alexey Miller, Chairman of the Company’s Management Committee and Alexander Khoroshavin, Governor of the Sakhalin Region.

The meeting noted a significant amount of Gazprom’s investments in the Sakhalin Region –the Company’s capital investment in the Region exceeded RUB 250 billion (around $7.2 billion) over five years (between 2009 and 2013). The funds were mainly allocated to the following strategic projects of Gazprom: the construction of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS), pre-development of the Kirinskoye gas and condensate field (Sakhalin III) and construction of a gas pipeline from the onshore processing facility of the Kirinskoye field to the Sakhalin main compressor station of the Sakhalin – Khabarovsk – Vladivostok GTS.

This year the capital investments will make up RUB 10 billion (around $287 million). The Kirinskoye field pre-development will continue, including the drilling of production wells. In 2014 Gazprom is going to launch commercial gas production from the Kirinskoye field.

Alexey Miller and Alexander Khoroshavin addressed the issues of gas supply to the Sakhalin Region. Between 2008 and 2013 the Company channeled over RUB 3 billion for these purposes. In particular, a General Scheme for Gas Supply to and Gasification of the Region was elaborated, three inter-settlement gas pipelines were built connecting the Dalneye gas distribution station (GDS) and the Yuzhno-Sakhalinsk CHPP-1, the Dalneye GDS and the Novo-Alexandrovsk settlement as well as the Novo-Alexandrovsk gas distribution point (GDP), the Klyuchi population center and the Sanatornoye population center. The Region’s Government, in its turn, fulfilled its obligations to prepare the consumers for gas supplies. As a result, the gasification level of the Sakhalin Region (taking into consideration the consumers, who received thermal energy from gas-powered TPPs) increased by 24.5 per cent to 33.6 per cent.

In 2014 the Company will carry on the construction of the gas branch and the Nogliki GDS, as well as the inter-settlement gas pipelines connecting the Nogliki GDS with the Nogliki GDP and the Nogliki GDS with the Nysh settlement.
The meeting addressed the plans to create an NGV fuel market in the Sakhalin Region. It was noted that in 2014 Gazprom would build a CNG filling station in Yuzhno-Sakhalinsk, the first one in the region.

The parties touched upon the issues related to Gazprom’s participation in social projects in the region. It was highlighted that the Company was running the Gazprom for Children project in the Sakhalin Region. Besides, in April 2013 Yuzhno-Sakhalinsk saw the inauguration of an ice palace constructed with Gazprom’s assistance.

 

Press Release, February 06, 2014

 

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