18 Oct 2018 12:21

Gazprom to spend 33 bln rubles by 2020 to expand Far East pipeline

MOSCOW. Oct 18 (Interfax) - Gazprom will announce a public request for proposals in October for the construction of the 505 km-874 km section of the Sakhalin-Khabarovsk-Vladivostok gas pipeline in Russia's Far East.

The maximum price for the contract will be 33.367 billion rubles and it must be completed by September 2020, company materials state.

The pipeline's first stage will have capacity for 5.5 billion cubic meters of commercial gas a year. In the second stage, capacity will be upgraded to 30 bcm a year by adding looping compressor stations to increase gas supplies to local consumers (such as Rosneft's Eastern Petrochemical Company, Nakhodka Fertilizer Plant, and Vladivostok LNG among others) and to supply gas for export to China.

Gazprom also plans to announce a public request for proposals in October for construction and installation work on the No. 2 gas pretreatment plant, phase two, which is part of the construction of infrastructure at the Chayanda oil and gas condensate field. The maximum price for this contract is 29.671 billion rubles.

In April, Gazprom announced a single vendor purchase totaling 51.44 billion rubles for expansion of the Sakhalin-Khabarovsk-Vladivostok gas pipeline, but no information about conclusion of a contract was published. It was reported that Gennady Timchenko's Stroytransneftegaz would be awarded the EPC contract.

In addition, in July 2018 Gazprom announced but immediately canceled a major purchase of pipe to expand the pipeline: 255,000 tonnes of large-diameter pipe at a maximum cost of 22.684 billion rubles by the end of October 2018. Gazprom has yet to announce a new purchase for this project.