Progress of feasibility study for gas pipeline project at 60 percent
Updated: Nov 18, 2022
On October 12, Deputy Prime Minister S. Amarsaikhan held a meeting with corresponding officials to discuss accelerating the progress of the gas pipeline project. The development of the project’s feasibility study is currently at 60 percent, and works are being carried out to complete the study by the fourth quarter of this year, noted project leader L. Amarsanaa. The feasibility study is being conducted with the length of the gas pipeline to pass through the territory of Mongolia as 966.8 km. As engineering studies are necessary to be carried out in order to ensure preparations for the construction work, policy support is required from the Government, highlighted CEO of the special-purpose company Gazoprovod Soyuz Vostok Aseev Evgeny Nikolaevich.
In turn, Deputy Prime Minister S.Amarsaikhan expressed that he will pay special attention to certain matters being urgently resolved, such as issuing a construction permit, deciding on the quota for workers, extending the work permit of the company staff, and being exempt or reducing the foreign workforce fee.
As for taking the land to be used for the gas pipeline and corresponding structures under state special needs, it was decided to have the issue discussed at the Cabinet meeting in the near future. With the gas pipeline, 50 billion cubic meters of gas are planned to be transported through the territory of Mongolia, and a fee of about USD 1 billion is estimated to be contributed to the state budget.
Gazoprovod Soyuz Vostok company registered in Mongolia on January 22, it was reported on the official website of Gazprom Company that a special-purpose company named Gazoprovod Soyuz Vostok was registered in Mongolia. The company was established with the purpose of performing design and survey works and conducting a feasibility study regarding the construction project for a gas trunkline to supply Russian gas across Mongolia to China.
“With the Soyuz Vostok gas pipeline, Russia's Power of Siberia 2 gas pipeline will extend through Mongolia, and its export capacity might become more than 1.3 times higher than that of Power of Siberia. This will allow us to export large amounts of gas from Western Siberia not only westward but also eastward,” said Alexey Miller.
In December 2019, Gazprom and the Government of Mongolia signed a Memorandum of Understanding. The document provides for a joint assessment of the feasibility of the project for pipeline gas supplies from Russia to China across Mongolia. In August 2020, a Memorandum of Intent was signed to set up a special-purpose vehicle in Mongolia.