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September 14, 2011

International Conference "Europe - Russia - Asia - Pacific. Energy: Integration and Cooperation" Was Held at the VII BIEF

International Conference "Europe - Russia - Asia-Pacific. Energy: Integration and Cooperation" Was Held within the framework of the VII BIEF. Conference participants discussed the development of energy resources, the possibility of creating gas - and petrochemical industries in Eastern Siberia and the Far East, as well as solutions to the problem of power supply industry.

A report on the conference was Sergey Naryshkin, Head of the RF Presidential Administration. He noted that the topic of development of raw materials development is of particular importance for Russia, which is a world leader on extraction of natural resources. With globalization, the role of energy, which becomes a tool for socio-economic development of regions, is increasing," said Sergey Naryshkin. According to him, Russia has successfully exporting gas and oil to Europe for 40 years.

УHowever, the bipolar world came to a multipolar one during this period. Russia was forced to reorient itself to new conditions and begin active cooperation with Asia Pacific countries, where, in recent years, demand for hydrocarbons is increasing rapidly. The demand in the region is forecasted to increase by 2.5 times by 2030," said the Head of Presidential administration. He stressed that Russia "is satisfied with the development of the cooperation with Asia Pacific countries."

Yuriy Sentyurin, Deputy Energy Minister, added that the Russian foreign energy policy is specified by a number of strategic documents that set the main aim of maximum energy efficiency. As part of the external energy policy, the country increases partnerships with other country", noted the Deputy Minister. He pays special attention to the "Eastern vector of energy policy." "Cooperation with Asia Pacific countries was previously seen as a hope, now - it's reality. Cooperation with China is actively developing, in particular, the construction of new generating facilities. In addition, the "road map" of cooperation with China in gas sector was signed in May this year; deliverance of up 30 billion cubic meters of gas to China up to 2015 has been planned," - said Yuri Sentyurin. He added that Russia-China dialogue to increase the supply of coal had been started; upgrade the transport infrastructure will be necessary for the implementation of this project. In addition to China, Russia conducts negotiations on joint projects with India, Japan and South Korea.

The need for an innovative approach to power was marked by Viktor Vekselberg, President of "Skolkovo" Fund, Chairman of the Board of Directors of the "Renova" Croup of Companies. "There are several priorities, including energy, within the framework of "Scolkovo" activity. In particular, we deal with issues of generation, electro-hospital transport, and heat, energy and utilities industry," said Viktor Vekselberg. As part of the "Skolkovo" activity, 157 companies, 40 of which offered cutting-edge developments in the energy sector, have been registered. Nevertheless, Russian FEC companies, according to V. Vekselberg, invest maximum of 1-1.5% of their budget in innovative technologies, while their foreign counterparts - 4-5%.

Academician Alexei Kontorovich, Scientific director of the A.A. Trofimuk Institute of Petroleum Geology and Geophysics SB RAS, reminded guests of the Conference, that development of deposits must be held exclusively with a view to raising living standards in the Baikal region. "We have to offer not only oil and gas to the APR markets, but also products with higher surplus value," said the academician. According to him, one cannot wait to create a center of gas production and gas processing facilities in eastern Siberia, as delaying the process could lead to a loss of interest to the export of Russian gas on the part of the APR. "There is no need to prepare the region for large-scale mining and processing of gas,or wasting any time," said Kontorovich,"It seems to me that the process should turn around Kovykta and Ust-Kut knots." He noted that, while preparing the region, pipelines "Chayanda - Ust-Kut" and "Yarakta - Ust-Kut" should be constructed; they will be located near the sites and deposits of subsoil and can supply raw materials for processing. "And exports could be carried out by the "Taishet - Altai Mountains" rout." The decision to transport Kovykta gas has already been proposed to "Gazprom," said Kontorovich,"But the possibility of supplying gas through the Trans-Baikal region by "Mongolia - South-Eastern China" track is worth being been considered." However, as the Academician concluded, the state should adopt and comply with the program, designed for the decades ahead, to enhance the formation of oil and gas processing industries.

Topic of natural gas processing was continued by Nikolay Melnik,"Sayanskhimplast". He said that the export of unprocessed gas causes economic damage to the country. However, Russia processes only 3% of the developed gas and 50% of not less valuable gas is burnt in flares by the companies. "Gas deposits of the Irkutsk region should become the basis for production with high surplus value, of polymers, as an example," believes N. Melnik, У Chemical facilities may be established in Usolye Sibirskoye, Sayansk, Angarsk, cities where prerequisites for them are: infrastructure, personnel and desire to work in processing."

The conference was followed by the presentations made by Chen Gotsin, Vice-president of China Yangtze Power Co. Ltd, Power Company; Maxim Barskiy, Deputy Chairman of "TNK-BP Management" OAO; German Pikhoya, Managing Director of "Polyus Gold" OAO; and a number of experts and representatives of the largest fuel and energy companies in Russia, China, Australia and the USA. In the conclusion of the conference, the participants adopted a series of recommendations, addressed to the Russian government and regional authorities. They suggested to include projects to construct lines linking Western Yakutia and UES of Siberia in the prepared State Program of social and economic development of the Far East and the Baikal region for 2012-2018, and investment program of "FSK ESK",OAO. In addition, it is recommended to accelerate the development and adoption of a federal law that would regulate the use of multicomponent gas and prohibits its direct combustion. The conference participants also discussed plans to speed up the creation of the East Siberian and Far-Eastern petrochemical clusters. It is recommended to the Bodies of the Subjects to design common strategies to develop energy sector and measures to support implementation of investment projects aimed at upgrading or construction of petrochemical industries.

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VII Baikal International Economic Forum Headquarters

VII Baikal International Economic Forum Headquarters
279, Baikalskaya st., Irkutsk, Russia, 664050

Foreign Participants Working Group
+7 3952 259 284
e-mail: sherstova@baikalforum.ru