RUSSIAN GAS FOR MONGOLIA

GAZPROM - October 22, 2021 - A meeting of the joint working group of Gazprom and the Government of Mongolia on the implementation of the Memorandum of Understanding regarding the project for pipeline gas supplies from Russia to China across Mongolia took place today in Ulan-Bator, Mongolia.

The meeting was headed by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Sainbuyan Amarsaikhan, Deputy Prime Minister of Mongolia.

The parties discussed the progress of the feasibility study for the Soyuz Vostok gas pipeline project and heard a briefing on its preliminary results.

It was noted that the Government of Mongolia has already taken a number of measures to provide the project with state support. These include quotas for the hiring of foreign labor by the Gazoprovod Soyuz Vostok special-purpose vehicle, as well as the possibilities of using the regulatory frameworks of Russia and Gazprom during design and construction. In addition, the Mongolian Government has made a decision in principle to reserve land plots for the facilities of the gas pipeline.

Thus far, Mongolian contractors have completed in due time the required on-site surveys, engineering & environmental mapping, and route analysis for the gas pipeline, including its crossing points with the existing utilities.

The meeting participants agreed upon the routing plan proposed by the special-purpose vehicle for use during the development of the feasibility study.

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Background

On December 5, 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 April 2021, the feasibility analysis regarding the construction project for the Soyuz Vostok gas trunkline was approved. The Soyuz Vostok gas pipeline will become an extension of Russia’s Power of Siberia 2 gas pipeline in Mongolian territory.

In the course of the feasibility analysis, the basic technical and technological parameters of the project were established. These include the optimal route for the gas pipeline in Mongolian territory, the pipeline’s length and diameter, the working pressure, and the number of compressor stations.

The feasibility study regarding the construction project for the Soyuz Vostok gas trunkline includes a detailed breakdown of the associated investment and operating costs. The study is being prepared by the Gazoprovod Soyuz Vostok special-purpose vehicle.

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