14 May 2024 13:18

First phase of Sakhalin oil and gas industrial park expected to open by fall - authorities

YUZHNO-SAKHALINSK. May 14 (Interfax) - The first phase of the Sakhalin oil and gas industrial park is scheduled to go into operation in August 2024, the press service of the regional government reported.

"The main mainline networks for water supply and water disposal systems have now been completed. Work on power supplies and 70% of the main automobile roads is scheduled for completion by June 30. The full completion of the work is planned in August," the first deputy CEO of the Far East and Arctic Development Corporation (FEDC), Sergei Lastochkin was reported as saying by the press service.

Three administrative and lab buildings will be completed by this time and all the necessary utilities infrastructure will be prepared, the press service said.

Meanwhile, construction is continuing on shops and production complexes for the second phase.

The chairman of the Sakhalin Region government, Alexei Belik said earlier that the first phase of the industrial part was scheduled to open in the first quarter of 2024.

"The construction of the industrial park is strategically important for our region. For us this is an opportunity to create a new sector of industry on Sakhalin essentially from scratch. The services that western companies previously provided will now be provided by firms localized here," the press service reported Sakhalin Governor Valery Limarenko as saying.

He said 13 service companies are now residents of the industrial park. Resident companies will provide services to restore pipelines without halting operations, repair gas turbines, electric motors and generators, carry out underwater maintenance and transport oversized cargo and equipment.

Thirteen plots of land with utilities connection points and roads have been put together for residents to carry out investment projects. Contracts have now been signed for the use of virtually all spaces in the industrial park, the press service said.

It was reported earlier that construction company Sakhalin Engineering won a tender to build the industrial park for 6.4 billion rubles. The contractor is supposed to complete the whole complex in 2026.

Seventy hectares of land in the northeastern part of Yuzhno-Sakhalinsk have been allocated for the park. The region's governor said at the Sakhalin Oil and Gas conference in 2020 that the construction of the park will reduce the regional oil and gas industry's dependence on supplies of equipment and components from abroad and that the share of service work carried out in the region will grow to 25% from 5%.

At the time, the regional authorities planned for the park to eventually have about 40 service company residents that would operate under the conditions of special economic regimes - a priority development area and the Free Port of Vladivostok.