Documents signed on gas infrastructure expansion and implementation of Gazprom’s investment projects in eastern Russia

A number of documents on gas infrastructure expansion and implementation of Gazprom's investment projects in the east of Russia were signed today at the Eastern Economic Forum 2022 in Vladivostok.

Alexey Miller, Chairman of the Gazprom Management Committee, and Valery Limarenko, Governor of the Sakhalin Region, signed an addendum to the 2021–2025 gas supply and gas infrastructure expansion program of the region.

According to the document, the gas grid will be additionally expanded to cover 14 rural communities of the Sakhalin Region that are located in the Yuzhno-Sakhalinsk urban territory, as well as in the Anivsky and Nevelsky urban territories. It is planned to connect 4,760 households and 29 boiler houses to the gas grid. To that end, five inter-settlement gas pipelines, as well as distribution networks and a connecting gas pipeline between the Yuzhnaya gas distribution station (GDS) and the GDS of the Troitskoye settlement, will be built.

Taking said works into account, the estimated amount of Gazprom's investments into gas supply and gas infrastructure expansion in the Sakhalin Region has increased 1.5 times, reaching RUB 34.9 billion.

Alexey Miller and Valery Limarenko signed two agreements of cooperation.

The parties are to join forces in implementing the construction project for a small-scale liquefied natural gas (LNG) production plant and receiving, storage and regasification systems in the Sakhalin Region. The implementation of the project is provided for by the region's gas supply and gas infrastructure expansion program.

Gazprom and the Sakhalin Region also plan to cooperate on the development of the pre-investment feasibility study for the construction of a gas condensate and oil processing plant on Sakhalin Island. The Government of the Sakhalin Region will complete the feasibility analysis showing whether it is economically viable to implement the project. On the basis of the results obtained, Gazprom will decide whether to perform the pre-investment study.

Alexey Miller and Vasily Orlov, Governor of the Amur Region, signed an addendum to the 2021–2025 gas supply and gas infrastructure expansion program of the region.

The initial version of the program envisages the construction of three gas pipeline branches stretching from the Blagoveshchensk, Svobodny and Pokrovsky Rudnik GDSs, as well as six inter-settlement gas pipelines.

Pursuant to the addendum, the program now includes another inter-settlement gas pipeline from the Blagoveshchensk GDS to the Aeroport settlement in the northwestern part of the city of Blagoveshchensk. In addition, distribution infrastructure will be created. As a result, conditions will be established for bringing gas to 600 households and two boiler houses, one of which supplies heat to the Blagoveshchensk International Airport named after N.N. Muravyov-Amursky.

A number of documents were signed in the presence of Alexey Miller.

Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, Chairman of the Board of Directors of Gazprom Teploenergo, Vasily Orlov, Governor of the Amur Region, and Vladimir Konstantinov, Head of Svobodny, signed an Agreement of Intent to implement a project for the reconstruction, upgrade and development of the heat supply system of the Svobodny town.

Under the document, Gazprom Teploenergo will analyze the existing heat supply system of Svobodny and explore the possibility of participation in the investment project under a concession agreement. It is planned to use highly efficient technologies and equipment and convert heat supply facilities to eco-friendly fuel, i.e. natural gas.

Lyubov Brish, Director General of Gazprom Helium Service, and Nikolai Zapryagaev, Director General of Russian Far East and Arctic Development Corporation (RFEADC), signed a Cooperation Agreement.

The parties are to collaborate on the implementation of a construction project for a small-scale natural gas liquefaction complex (NGLC) in the Nadezhdinskaya PDA (Primorye Territory) with a view to, inter alia, potentially using LNG in off-grid gas supplies. Among other things, RFEADC will be responsible for connecting the future complex to utility infrastructure.

Lyubov Brish and Nikolai Zapryagaev also signed an Agreement to conduct business in a priority development area. The document was signed in furtherance of the Cooperation Agreement concluded between the parties with regard to the creation of a small-scale NGLC in the Svobodnensky District of the Amur Region.

In line with the newly signed document, Gazprom Helium Service has become a resident of the Svobodny PDA (Amur Region). Thanks to its new status, the company is now entitled to preferences and reliefs while implementing the project, including in the course of establishing connections to power supply networks. 

It is planned to generate about 130 new jobs for highly qualified specialists at the small-scale NGLCs.