Gazprom considers opportunities for oil refinery construction in Sakhalin

The parties discussed the issues of cooperation between Gazprom and the Oblast Government within the Eastern Gas Program. In particular, the meeting touched upon progress in constructing the inter-regional Sakhalin – Khabarovsk – Vladivostok gas transmission system unrivaled in the Far East.
Consideration was also given to the regional gasification projects. At present, the Company has almost completed testing of the linear part of the inter-settlement gas pipeline linking the Dalneye GDS with CHPP-1 in Yuzhno-Sakhalinsk. In addition, Gazprom is constructing an inter-settlement gas pipeline from the Dalneye GDS to the Novo-Alexandrovsk settlement and designing new gas laterals. In 2011 the Company is planning to allocate RUB 670 million for the Oblast gasification.
Alexey Miller and Alexander Khoroshavin discussed the opportunities for constructing an oil refinery in the Sakhalin Oblast. It was noted that in the present year Gazprom was planning to finalize the Investment Concept for the oil refinery construction. Meanwhile, the transition to the Investment Rationale preparation stage is only possible in case of the required resource base availability.
The Cooperation Agreement between Gazprom and the Sakhalin Oblast Government was inked on September 14, and the Gasification Accord – on November 15, 2006.
The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.
The Program stipulates prioritized construction and development of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) being constructed by Gazprom since July 2009. The first startup complex of the Sakhalin – Khabarovsk – Vladivostok GTS will be commissioned in the third quarter of 2011.
The gasification level in the Sakhalin Oblast stands at 8.4 per cent while Russia's average is 63.2 per cent.
In 2009 Gazprom developed the General Scheme for Gas Supply to and Gasification of the Sakhalin Oblast.
Between 2009 and 2010 Gazprom invested RUB 620 million in designing and constructing inter-settlement gas pipelines linking the Dalneye GDS with CHPP-1 in Yuzhno-Sakhalinsk and the Dalneye GDS with the Novo-Alexandrovsk settlement.