GO
Loading...

UPDATE 1-Gazprom pledges $38 bln for gas field, Pacific pipeline

* Gazprom seeks to focus more on Asia, diversify from Europe

* Company to build LNG plant in Vladivostok

NOVO-OGARYOVO, Russia, Oct 29 (Reuters) - Russia's Gazprom pledged more than $38 billion to develop an East Siberian gas field and build a pipeline to the Pacific port of Vladivostok to lessen its reliance on exports to Europe and develop Asian markets.

Russian President Vladimir Putin has ordered Gazprom, the country's pipeline gas export monopoly, to forge close ties with fast-growing Asia Pacific consumers, such as China and Japan, to offset sagging demand in Europe.

On Monday, Gazprom's Chief Executive Alexei Miller told Putin the company would invest 770 billion roubles ($24.5 billion) to build the 3,200 km (2,000 mile) pipeline from the East Siberian Chayanda deposit to Vladivostok.

He said 430 billion roubles ($13.7 billion) would be invested in development of the field.

Gazprom, in partnership with Japanese companies, plans to build a liquefied natural gas (LNG) plant in Vladivostok, which may come on stream by 2020 with production of between 10 million and 20 million tonnes.

Miller said the pipeline was expected to connect Vladivostok in 2017 with the field, which has estimated resources of 1.3 trillion cubic metres of gas.

``In the nearest future, we are able to create gas exporting capacity comparable to that of European gas exports,'' Miller said.

Gazprom's gas exports to Europe, where it covers a quarter of gas needs, are expected to fall this year from the 150 billion cubic metres it shipped in 2011.

Gazprom will also develop another giant East Siberian fields, such as Kovykta, to feed the eastern route.

Symbol
Price
 
Change
%Change
GAZP1
---