Russia is expected to export huge volume of gas from its Siberia
to China and the Republic of Korea (ROK) if the three governments
approve the construction of a US$17 billion gas project.?
Russia's RUSIA Petroleum, China National Petroleum Corporation
and Korea Gas Corporation signed in Moscow Friday an International
Feasibility Study (IFS) Report about the project after eight years
of evaluation and research process.
Agreeing that the gas and condensate project is technically
viable and economically feasible, the three companies will submit
the IFS report to their respective governments for approval before
starting further commercial negotiations.
The planned 4,887-kilometer-gas-pipeline, the longest of its
kind in Asia, will link the Kovykta gas field located in the
Irkutsk Oblast in Russia's East Siberia to cities of Shenyang,
Beijing and Dalian in China and will finally reach Pyeongtaek in
ROK via a sub-sea pipe.
According to a Preliminary Letter of Intent also signed by the
three parties Friday, China and ROK are expected to import 600
billion and 300 billion cubic meters of gas, respectively, via the
gas bridge from Russia over a 30-year period.
The Kovykta gas field, with a gas reserve of 1.4 trillion to 1.9
trillion cubic meters, is capable of supplying 34 billion cubic
meters annually to China and ROK as well as to its domestic
market.
The three companies plan to ensure the first delivery of gas in
2008 upon completion of the construction of the gas field, the
pipeline and other market infrastructures.
The gas pricing formula and the final route of gas
transportation will be finalized following the official consent on
the complete project.
Experts believe that the implementation of the huge gas project
will not only help to develop Russia's East Siberia region but also
contribute to the joint economic growth of Russia, China and the
ROK.
(Xinhua News Agency November 15, 2003)