The North Korean section of the pipeline to South Korea to build Gazprom

Concern "Gazprom" will become the sole builder of the North Korean gas pipeline, through which fuel from the Russian Far East will be able to ship to South Korea via the North.


"Gazprom" will take on the financial costs of the construction of the gas pipeline length of about 700 kilometers. The project may attract North Korean labor. From South Korea to build a gas pipeline to the border with North Korea will be the South Korean state Korea Gas Corporation (Kogas).

It was also decided that the gas pipeline to South Korea will only transit, and the project does not provide for the provision of fuel for the needs of the DPRK. The contract for the supply of gas between "Gazprom" and Kogas, is scheduled to be signed in the spring of 2012, but the parties have yet to agree on the volume of deliveries, timing, price formula and the point of the South Korean side of the fuel transfer. As noted Timonin, after solving all these issues for Russian gas supplies to Seoul could start in 2017.

In addition, the Russian side has already received a political guarantee for the project from the leaders of both South and North Korea. A source in the Russian government announced that in August this year at a meeting with the president of the Russian North Korean leader Kim Jong Il said Pyongyang would not violate the transit of gas. November 2 leader of South Korea Lee Myung-bak also said the final country’s readiness to participate in the project.

Russia signed a memorandum of understanding Kogas in the construction of a gas pipeline across North Korea in 2008, but the road map for the project the parties signed in the autumn of 2011. At the same time, Moscow began negotiations with the DPRK on the implementation of the project. It is assumed that the total length of the pipeline will be more than 1100 kilometers, and the capacity of the pipeline — about 20 billion cubic meters of gas per year.

Now from Russia to Seoul comes around 1.5 million tons of liquefied natural gas (about 2 billion cubic meters) per year from the project "Sakhalin-2". Since 2017, South Korea is ready to buy 10 billion cubic meters of Russian gas.

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