Power Of Siberia Pipeline to Allow Gas Exports Based on Market Conditions - Putin

YAKUTSK, September 1 (RIA Novosti) - The Power of Siberia pipeline will contribute to the Russian Far East and Siberia’s gasification, enabling the joining of Russia’s gas networks into one and will allow the redirection of gas supplies depending on the market conditions, Russian President Vladimir Putin said Monday.

“It [the pipeline] will not only enable us to expand the export supplies and widen the geography of our hydrocarbon exports, but is also an important step in gasification of our own country. It is particularly important for the eastern regions,” Putin said in his address to the students of the North-Eastern Federal University.

According to Putin, the next step is going to be “even more interesting” from an economic perspective.

“After that we will create the network of gas pipelines here, in the Far East, in Siberia, it will create an opportunity to combine the European part of the gas pipeline system with the eastern part. From the perspective of the export opportunities, from the perspective of gasification geography expansion in our country, it will create major advantages in terms of redirecting gas supplies in accordance with the situation in the world markets, either sending more to the West, more effective, or to the East,” the president said.

Putin added that these projects are also important for the North-Eastern Federal University, as more than 3,000 highly qualified specialists will be required for the pipeline’s realization. Putin added that Russian gas company Gazprom has already signed the relevant agreement with the university.

Putin is expected to take part in a ceremony marking the connection of the first link of the main gas pipeline of the Power of Siberia, whose total length is about 4,000 kilometers (2,500 miles). The pipeline will be used to supply gas to the domestic market, as well as for its export to China. The estimated cost of its construction is 770 billion rubles [$21 billion], including investments in the territory of Yakutia amounting to 283 billion rubles [$7.6 billlion].