4 September 2024

Development of Far East gas infrastructure: stability or breakthrough

One of the most significant energy breakthroughs in Russia will be the gasification of the Far Eastern regions. This initiative must, however, be economically viable and oriented towards long-term development. The Amur Gas Chemical Complex, currently under construction in the city of Svobodny in the Amur Region, incorporates cutting-edge technological solutions. The world’s largest plant for the production of polyethylene and polypropylene will open new horizons for the petrochemical industry. These were the conclusions reached by participants at the ‘Development of Far East Gas Infrastructure: Stability or Breakthrough?’ session held as part of the Eastern Economic Forum.

KEY CONCLUSIONS

The potential for gasification within Russia generally, and in the Far East specifically, is substantial

“The potential for gasification in Russia is considerable. […] It could generate an additional RUB 15–20 billion, not only from households but also by connecting new regions, particularly along the route of the ‘Power of Siberia-2’ pipeline,” Pavel Sorokin, First Deputy Minister of Energy of the Russian Federation.

“Approximately 70% of all facilities financed by the federal budget are currently being established in Yakutia, as it is the most promising oil- and gas-producing region in the Far East. Despite Yakutia having only 36 active subsoil users, 11 new fields have been discovered there in the past five years, five of which are major fields. These are gas fields. This is an exceptional achievement, indicating that the region’s potential has not yet been exhausted,” Evgeny Petrov, Head, Federal Agency for Subsoil Use.

The gas chemical complex in the Amur Region represents a unique experience for the petrochemical sector

“Projects of this scale have never before been implemented in the Russian Federation; indeed, such projects are rare even globally. This experience will greatly benefit our industrial, construction, and petrochemical sectors, which will operate the complex. The complex incorporates unique and advanced technological solutions, including engineering design, environmentally friendly practices, automation, and the use of the industrial Internet of Things. As it has been said, this complex is a dream for chemical engineers, industrialists, and innovators alike,” Darya Borisova, Member of the Board – Managing Director for Development and Innovations, SIBUR.

PROBLEMS

Inefficient solutions and unmet regional obligations in implementing gasification programmes

“Regions do not always effectively ensure the implementation of gasification. For instance, Khabarovsk hosts an underutilized thermal power station. […] In order to supply this station with gas and produce it more economically and efficiently, the region has decided to establish a gas-fired boiler house in the nearby new residential quarters,” Roman Berdnikov, First Deputy General Director, Member of the Management Board, RusHydro.

“Most regions meet their obligations [to prepare consumers for receiving gas – ed.]. However, there are those that have not yet fully prepared boiler houses and other consumers for gas supplies. We are paying attention to this matter,” Vitaly Markelov, Deputy Chairman of the Executive Board, Member of the Board of Directors, Gazprom.

SOLUTIONS

Considering regional characteristics when making decisions on energy supply options

“When deciding on the best energy supply approach for a given region, it is essential to consider its location and the most cost-effective methods for energy provision. In certain cases, such as isolated areas in Yakutia, it is clearly impractical to extend gas pipelines. […] In such locations, renewable energy sources can and are being utilized, reducing the cost of these resources for consumers,” Vitaly Korolev, Deputy Head, Federal Antimonopoly Service of the Russian Federation.

“Which economically accessible resource is available in the region? If a resource is both affordable and abundant, it can serve as a strategic foundation for developing the energy sector. […] It is crucial to rethink approaches in the Far East, based on the region’s unique characteristics. The region lacks the powerful resource fields found in Western Siberia,” Vitaly Markelov, Deputy Chairman of the Executive Board, Member of the Board of Directors, Gazprom.

Making the most efficient decisions in implementing regional gasification projects

“It is essential to make decisions that align with the efficiency we are discussing. […] There are several regions where we can reallocate gas currently being used in less efficient ways, in our view, towards more effective solutions. […] There is no need to build new boiler houses; we should simply expand the load and upgrade the existing thermal facilities,” Roman Berdnikov, First Deputy General Director, Member of the Management Board, RusHydro.

 

*This is a translation of material that was originally generated in Russian using artificial intelligence.

For more information, visit the Roscongress Foundation’s Information and Analytical System at roscongress.org/en.