Putin instructed to solve the problem of «Rosneft» COMPANY, but without the guidance of «Gazprom»

© RIA Novosti / Sergey Goneeverything in Photobacterium of the Russian Federation Vladimir Putin at the ceremony of the pouring of the first Foundation of the Amur gas processing plant. 3 August 2017Putin instructed to solve the problem of «Rosneft» COMPANY, but without the guidance of «Gazprom»© RIA Novosti / Sergey Goneeverything the image Bank

Russian President Vladimir Putin instructed his administration and government to connect to the solution of a question with gas refinery and petrochemical project of «Rosneft» in the far East, however stated that direct instructions «to Gazprom» for this reason the authorities will not give.

Talking about the project «Eastern petrochemical company» (VNHK). Currently it is wholly owned by Rosneft. In 2016 the largest Russian oil company agreed with China’s ChemChina on its joining the project with a share of 40% and a proportional funding, but until the deal closes.

«Rosneft» plans to build three queues will be FORMED. The first and second stage should be commissioned in the period up to 2022 is a refinery with a capacity of up to 12.5 million tons of oil and petrochemical capacity of 3.4 million tons of raw material per year. The volume of investments in two waves, as reported on a meeting with the head of the state energy Minister Alexander Novak, the total 796 billion.

For his part, the head of «Rosneft» Igor Sechin noted that the project COMPANY due to the refining capacities will fully provide the demand for gasoline in DFO in the long term, and its petrochemical complex will become the center of the emerging petrochemical cluster DFO. He also pointed to the opportunities for export of petroleum products and petrochemical products in the Asia-Pacific region in the volumes produced in excess of demand in the Russian Far East.

Please Sechin

However, the project has a problem. As stated Sechin, the absence of an agreement with «Gazprom» oil COMPANY threatens the life of its implementation. «The key issue for us is the problem of providing natural gas in full and willingness to provide for increasing the capacity of pipelines to the required deadline is the second quarter of 2020. And here we can not obtain the final solution, despite orders that the address of the producer gas was given,» — said Sechin.

«This volume is not very big, which is 2.3 billion cubic meters of gas intended mainly for electricity generation. In 2021, we should introduce a powerful plant for 550 MW, which will provide the complex and the surrounding areas. In the absence of the necessary decisions there is a risk for the planned timing of the project, deteriorating its economic indicators. We are in dialogue with Gazprom. «Gazprom» offers to find gas resources from the perimeter of Rosneft. But we have no resources», — continued the head of «Rosneft».

«The fact that the company produces on Sakhalin, we already supply for power projects on Sakhalin and in the far East, in Khabarovsk Krai. Even if we reorient these volumes are to be FORMED, it seems unlikely we will have to disable the power generation facilities that are now provided through these volumes of gas,» — said Sechin.

«But even with this existing capacity for gas will not be enough to provide be FORMED. So please find a way to solve this issue in accordance with a recent Directive,» said Sechin.

Putin’s Reaction

The Russian presidential aide Andrei Belousov in this connection, recalled the instruction that previously was given by the head of state. Putin in December 2016, has instructed the Russian government to take measures to supply the COMPANY with gas from «Gazprom» and gas holding recommended to provide priority grid connection project facilities to trunk pipelines and distribution networks.

«Concerning gas supplies — the government the government in this case to take measures to supply the COMPANY with natural gas for up to 1 March. It is not yet fulfilled. Offer, using the fact that there is a management of «Gazprom» and «Rosneft», after all this excitement, especially as these 2.3 billion cubic meters — the volume is very large, and it is necessary to fix a specific deadline and make the corresponding decision», — said Belousov.

In response to such a proposal, Putin said that relations between the two companies, even if their capital is involved the state should be based on market principles.

«So I ask the government, and of administration in terms of economic unit to complete this work between companies and to seek solutions. But whether «Gazprom» to give direct instructions from the government to do one thing or another? I think, inappropriate. «Gazprom» all-taki joint-stock company with significant foreign capital participation, as well as «Rosneft». We can and must influence the processes that occur between the participants of economic activities, but the guidance will not give» — said the Russian leader.