Saturday August 19, 2006

Russia eyes yet another gas pipeline to China

peakoil.com -> jamestown.org :

Apart from preparing to build the Altai gas pipeline from Western Siberia, Russian authorities have also indicated plans to build a new gas pipeline from Sakhalin to neighboring China along a network of gas pipelines to supply domestic consumers in Russia's Far East.

Sakhalin-1 began oil production in 2005. Estimated reserves are 2.3 billion barrels of oil and 17 trillion cubic feet of natural gas. Commercial production in the Sakhalin-1 project has been trailing that of Sakhalin-2, where oil production started in 1999. Sakhalin-2 has reserves of some 1.1 billion barrels of oil and 17 trillion cubic feet of gas. The second stage includes gas production and liquefaction at a new liquefied natural gas (LNG) plant on Sakhalin with projected annual capacity of 9.6 million tons.

Earlier this year, Gazprom was reportedly planning to buy all gas from Sakhalin-1 for re-export to China. Japan is unlikely to consume any significant amount of natural gas from Sakhalin-1 before 2013, as this market appears oversupplied with imported LNG. South Korea is also an unlikely client because a gas pipeline through North Korea remains impossible, therefore China is an obvious option for gas export.

See also :

1. Energy key in the new Asian architecture
2. China-Kazakhstan oil pipeline connected
3. Singapore hopes for Russian LNG supplies

(2006-08-19 09:53:09 SGT) [Energy] Permalink

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