Progress sought on Siberia-Pacific oil line

Oct. 24, 2005
Russian Prime Minister Mikhail Fradkov—in an effort to speed up implementation of the Eastern Siberia-Pacific Ocean pipeline project—has directed relevant ministries and departments to prepare a detailed proposal by Nov. 10.

Eric Watkins
Senior Correspondent

LOS ANGELES, Oct. 24 -- Russian Prime Minister Mikhail Fradkov—in an effort to speed up implementation of the Eastern Siberia-Pacific Ocean pipeline project—has directed relevant ministries and departments to prepare a detailed proposal by Nov. 10.

Fradkov's directive said: "The setting up of the Eastern Siberia-Pacific Ocean (ESPO) pipeline system has dragged out without good reason. One of the priority projects for the country's economic development is practically not being implemented."

Fradkov issued the directive to Russia's Industry and Energy Ministry, the Federal Technical Oversight Agency, the Natural Resource Ministry, the Economic Development and Trade Ministry, and the Regional Ministry.

He ordered them to work with state-owned pipeline monopoly Transneft to decide on the positions of government and local authorities regarding construction of the ESPO line.

Fradkov's directive calls for work to be organized to agree on the main outlines of a feasibility study for the project to include the route, technical solutions, and financing.

To monitor progress, Fradkov also ordered the relevant ministries to submit quarterly reports to the government on the project's implementation.

Fradkov signed a resolution on Dec. 31, 2004, to build the Eastern Pipeline, with Transneft as its designer and builder.

The first stage of the project calls for a 2,400 km oil pipeline from Taishet to Skovorodino and a rail oil terminal on Perevoznaya Bay. The second stage, which depends on development of East Siberian oil fields, involves further construction from Skovorodino to Perevoznaya.

In August, Boris Govorin, governor of the Irkutsk Region, said Russia would begin construction this fall of the first leg of its planned 4,130 km crude oil pipeline from Taishet in eastern Siberia to the Sea of Japan (OGJ Online, Aug. 10, 2005).

Contact Eric Watkins at [email protected].