Power of Siberia 2 Gas Pipeline

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Power of Siberia 2 Gas Pipeline (Russian: Сила Сибири - 2; Chinese: 西伯利亚力量-2号) is a proposed natural gas pipeline in Russia. The extension in Mongolia is referred to as Soyuz Vostok (Russian: Союз Восток).

The pipeline was previously proposed to follow a different route into China, at which time it was referred to as the Altai Gas Pipeline.

Location

The pipeline is proposed to run from the Bovanenkovo and Kharasavey gas fields in Yamal, Russia through Urengoy, Krasnoyarsk Territory, Irkutsk Region, Buryatia and Transbaikalia. It would pass close to Lake Baikal, crossing the border of Mongolia, pass by Ulan Bator, and go on to China. It is expected that the pipeline will pass through the Irkutsk region along the route Zima - Sayansk - Cheremkhovo, after which it will turn to the Tunkinsky district of Buryatia, pass through Kyakhta and run through Mongolia.

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Location, Power of Siberia 2–Sayansk Branch Pipeline

The pipeline was proposed to run from Power of Siberia 2 to Sayansk. Since a new route has been proposed in 2022 which would go through Sayansk, we consider this pipeline's proposal cancelled.

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Project Details

• Operator:
• Owner: Gazprom
• Parent company: Gazprom
• Capacity: 50 - 80 billion cubic meters per year
• Length: 1,612 miles / 2,594 kilometers
• Diameter: 1420 mm
• Status: Proposed
• Proposal year: 2019
• Construction year: 2024 (proposed)
• Start year: 2030
• Cost: US $4.5 to 13.6 billion
• Financing:
• Associated infrastructure: Power of Siberia Gas Pipeline; Bovanenkovskoye Oil and Gas Field (Russia); Kharasaveyskoye Gas Field (Russia); Kovykta-Sayansk-Irkutsk Gas Pipeline

Project Details, Power of Siberia 2–Sayansk Branch Pipeline

• Operator:
• Owner: Gazprom
• Parent company: Gazprom
• Capacity:
• Length:
• Diameter:
• Status: Cancelled
• Proposal year: 2020
• Start year:
• Cost:
• Financing:
• Associated infrastructure: Sayansk–Angarskaya Gas Pipeline; Kovykta-Sayansk-Irkutsk Gas Pipeline

Background

A memorandum on deliveries of Russian natural gas to China was signed by Gazprom CEO Alexei Miller and China National Petroleum Corp. (CNPC) CEO Chen Geng during the Russian President Vladimir Putin's visit to China in March 2006. The project was put on hold due to disagreements over natural gas prices and competition from other gas sources in the Chinese market.

In 2013, Gazprom and CNPC agreed to instead pursue a more eastern route, the Power of Siberia gas pipeline. Planning for this project occurred at the 2014 APEC China summit. In November 2014, CNPC signed a preliminary agreement with Gazprom for construction of the $300 billion Altai gas pipeline (a western route) that was to deliver 30 bcm of gas per year for 30 years from western Siberia in Russia to China's Xinjiang region. In July 2015 the pipeline was indefinitely postposed by Russia due to a slowdown in the Chinese economy.

Chinese and Russian officials revived the project in 2019. In March 2019, the Chinese Vice Premier Zhang Gaoli urged the Gazprom CEO Alexei Miller to accelerate the development of the pipeline. In September 2020, the Gazprom CEO Alexey Miller and the Mongolian Prime Minister Ukhnaagiin Khurelsukh signed a letter of intent to develop a pipeline with a capacity of 50 bcm/yr.

Recent developments

The original route of the pipeline was through the Altai mountains towards Xinjiang. In September 2019, China had expressed a preference for routing the line through Mongolia instead of Xinjiang, a new route was proposed through Ulan Bator in the Mongolian steppes and in the direction of Beijing in China. In April 2021, Gazprom approved the preliminary technical and economic analysis (feasibility study) of the proposed pipeline. This analysis proposed the optimal route, length, diameter, operating pressure, and quantity of compressor stations.

Preparations to develop the line’s Mongolian section have also begun. The government of Mongolia and Gazprom have signed a memorandum of understanding in December 2019 which established a joint working group. In May 2020, Gazprom began the design and survey work for the pipeline on the territory of the Russian Federation.

In January 2021, Gazprom has registered a Special Purpose Vehicle (SPV) company "Soyuz Vostok Gas Pipeline" in Mongolia. The company was established between Gazprom and the government of Mongolia in order to carry out design and survey work and develop a feasibility study for the construction of the pipeline including a detailed calculation of investment and operating costs. In February 2021, the company expected results of the study to be available as early as the first quarter of 2021. On March 11, 2021, the plan of activities of the Joint Working Group for 2021–2022 was approved.

According to Gazprom's CEO, results of a feasibility study were approved by the parties in January 2022. As the next step, the Soyuz Vostok Gas Pipeline Special Purpose Company and Gazprom Proektirovanie signed an agreement to carry out design and survey work as part of the construction of the gas pipeline. The document provides for the involvement of Mongolian companies for geodetic engineering, environmental engineering and archaeological surveys. Engineering surveys and design of the pipeline facilities were expected to be conducted jointly by Gazprom and Mongolian government in 2022 and 2023. In April 2022, Gazprom's representatives in Mongolia have started a series of meetings with the local authorities of aimags (regions) which would be impacted by the pipeline.

Route

Proposed route through Mongolia to China

The original route of the pipeline was through the Altai mountains towards Xinjiang. In September 2019, China had expressed a preference for routing the line through Mongolia instead of Xinjiang, a new route was proposed through Ulan Bator in the Mongolian steppes and in the direction of Beijing in China.

The 2,594 km (1,612 mi) long pipeline would start from the Bovanenkovo and Kharasavey gas fields in Yamal. A new pipeline corridor would have to be built after Urengoy, passing through the Krasnoyarsk Territory, Irkutsk Region, Buryatia and Transbaikalia. It is expected that the pipeline will pass through the Irkutsk region along the route Zima - Sayansk - Cheremkhovo, after which it will turn to the Tunkinsky district of Buryatia, pass through Kyakhta and run through Mongolia. It has also been reported that one of the new route options being considered by Gazprom includes the pipeline passing directly through the Tunkinsky National Park in Buryatia, Russia which might be problematic due to environmental concerns.

Currently there are no existing gas corridors on this route. The pipeline would then pass close to Lake Baikal, near which it would cross the border of Mongolia, pass by Ulan Bator, and go on to China. Later on, there is a possibility of an additional segment being constructed to connect the Power of Siberia and Power of Siberia 2. In China, near Yongqing / Beijing, the pipeline may connect to the Russia-China East Line Domestic Extension Phase III (Yongqing - Shanghai) gas pipeline currently under construction.

Power of Siberia 2–Sayansk Branch Pipeline

There would also be a section of a pipeline running from Power of Siberia 2 route to Sayansk where it would connect to other proposed pipeline systems including the Sayansk–Angarskaya Gas Pipeline and the Kovykta-Sayansk-Irkutsk Gas Pipeline. The route appears on a 2020 Gazprom natural gas network development map. Since a new route has been proposed in 2022 which would go through Sayansk, we consider this pipeline's proposal cancelled.

Technical description

The diameter of the pipeline would be 1,420 mm (56 in). The designed capacity of the pipeline would be between 50 to 80 billion cubic meters (bcm) of natural gas annually. This estimate is based on a statement that the new pipeline’s capacity would be 1.3 times higher than the capacity of the Power of Siberia pipeline. The capacity of the Power of Siberia pipeline is 60 billion cubic meters of natural gas annually. The pipeline would be built and operated by Gazprom with support from the Mongolian government.

Environmental and social impacts

The pipeline project was originally criticized by environmental organizations because it would go through the Ukok Plateau, which is the natural habitat of the snow leopard and other endangered species. Altai national leaders also feared that laying the pipeline and accompanying technical highway would pave way for a Chinese expansion into Altai; the pipeline route would have also impacted burial sites and shrines in the region.

The new route would not go through the Ukok Plateau but instead pass through the Mongolian steppes where it would be less challenging to complete construction than in the mountainous area of the Altai mountains. However, the new route will pass through a seismically active region which may pose new issues; on January 12, 2021, there was an earthquake 8.7 in magnitude in Mongolia, approximately 100-200 km from the proposed pipeline route. High seismic activity in the region may make the implementation of the project even more costly than originally planned.

In November 2021, ecologists in Mongolia raised concerns about this project. Gazprom Proektirovanie, the firm tasked with the design and survey work for the pipeline, ordered aerial photography of the proposed - but not yet approved - route that may pass through the Tunkinsky National Park in Buryatia, Russia. The length of the pipeline passing through the park would be 125 km, and it would cross the park in the very middle, which would mean that particularly valuable natural area would be split in two. This would have significant impact on the flora and fauna of the park.

Articles and resources

External articles

Wikipedia also has an article on Altai gas pipeline (Altai gas pipeline). This article may use content from the Wikipedia article under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported License].