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)
