Taking part in the meeting were Deputy Prime Minister Alexander Novak (via videoconference), Deputy Prime Minister – Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev, Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin, Minister of Industry and Trade Anton Alikhanov, Minister of Economic Development Maxim Reshetnikov, Minister of Finance Anton Siluanov, Minister of Energy Sergei Tsivilev, Minister for the Development of the Russian Far East and the Arctic Alexei Chekunkov, the heads of the Republic of Sakha (Yakutia), the Republic of Buryatia, Trans-Baikal Territory, Kamchatka Territory, Primorye Territory, Khabarovsk Territory, Amur, Magadan and Sakhalin regions, the Jewish Autonomous Area (via videoconference), and the Chukotka Autonomous Area. Other participants included Director General of the State Atomic Energy Corporation Rosatom Alexei Likhachev, Gazprom CEO Alexei Miller, Chairman of the Management Board of NOVATEK Leonid Mikhelson, Rosseti CEO Andrei Ryumin, Rosneft CEO and Chairman of the Management Board, Deputy Chairman of the Board of Directors Igor Sechin, and General Director of RusHydro Viktor Khmarin.
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Opening remarks at the meeting on the development of the fuel and energy complex of the Far East
President of Russia Vladimir Putin: Good afternoon, colleagues,
Today, ahead of the Eastern Economic Forum plenary session that will focus on the region’s strategic development objectives, I suggest holding a detailed discussion of the situation in one of our key sectors: the energy complex of the Far East.
We can see that the Far East is developing at a fast rate, thanks to our joint efforts, for which I would like to thank all of you. This is truly the result of our joint teamwork; the sector would not have developed so rapidly on its own. Landmark industrial and infrastructure facilities have been created over the past few years, transforming the image of this federal district, its economy, and the social sphere.
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New enterprises have been commissioned today, including the Artyom multimodal logistics centre, a terminal of Khabarovsk International Airport, and the first block of the Innovative Science and Technology Centre.
I would like to point out that the advanced development of the Far East is certainly a national priority. We should drive up the rates of growth further, striving to develop the competitive advantages and potential of the Far Eastern Federal District as much as possible. Our goal is to provide all the necessary resources, including energy, for the region’s economic growth.
Some time ago, instructions were issued to draft a programme for developing the energy capacities of the Far East for a period until 2050, and to identify the sources of funding this programme. Today, I would like you to tell me what has been accomplished and whether there are any obstacles.
The key tasks include ensuring a sustainable gas supply to all regions of the Far Eastern Federal District. As estimated by the Ministry of Energy, demand for natural gas in the Far East is expected to grow several times over in the coming years. We can already see the signs of a shortage: it is becoming increasingly difficult to guarantee supplies to new enterprises. These issues must be addressed as a priority, taking into account not only the rising domestic demand for gas, but also the growth of our export obligations.
In the future, the Yuzhno-Kirinskoye field on the Sakhalin shelf is expected to become one of the main sources of gas for the Far East. I would like to hear today about the progress on its launch.
Another point I would like to raise is that the construction of gas transportation infrastructure in the Far East is objectively a costly undertaking. Meanwhile, the region possesses substantial coal reserves, as we noted during the first event today. I believe it would be appropriate to assess the possibilities for expanding coal generation in the Far East, naturally where it is economically justified and feasible. This should, of course, be done with the use of modern technologies and in strict compliance with environmental standards. According to various estimates, the region’s coal reserves are sufficient for up to 900 years. Such significant resources make it worth considering how best to put them to use.
Next, regarding the development of the Far East’s electric power industry. Over the past decade, electricity consumption here has increased by 28 percent. For comparison, the national average increase over the same period was 14 percent – half as low. This is a strong overall indicator of the real processes taking place in the region.
While there are currently no signs of an acute shortage of generating capacity, the fixed assets of energy companies are wearing out. Moreover, electricity is being supplied to consumers from different energy systems, some of which are technologically isolated.
It is evident that we need to accelerate the construction of new electric power capacities in the district and upgrade the existing power stations. The stages and deadlines for this work should be clearly coordinated.
It is also important to actively develop the hydropower industry in the Far East as an effective and environmentally friendly source of energy. The region’s vast hydropower potential remains clearly underutilised; hydroelectric power plants not only ensure a reliable supply of electricity to the regions but also provide complex socioeconomic benefits from water supply to flood control, which, as we know, is of particular importance for the Far East.
It is necessary to develop projects to build large hydropower facilities and provide for reliable sources of their financing. I would like to emphasise that such work is essential not only for meeting the region’s energy needs, but also for preserving and developing professional competencies, the hydropower school, for which our country has long been renowned.
I would also note that another traditionally strong sector, nuclear energy, is actively developing in the Far East. There are plans to build the Primorskaya and Khabarovsk nuclear power plants. Small-scale nuclear power projects, such as the Yakutsk and Chukotka small power plants, are already being implemented. There are plans to build another unique floating nuclear power plant, which should supply energy to the Baimsky Mining and Processing Plant in Chukotka.
I would like to stress once again that nuclear power projects are rightly considered part of green energy, as they produce virtually no carbon footprint. Of course, we must continue to develop this promising area. I hope to hear your opinions and proposals on this today.
In conclusion, I would like to highlight that the situation in the electric grid complex requires special consideration. The increase in energy consumption has led to higher loads on the power grids. It is already clear that its upgrading cannot be postponed. We cannot wait until the system enters a critical state, forcing us to turn to the Ministry of Finance with urgent requests to allocate funds under emergency circumstances. Our actions must be well-planned and consistent. Today, we will also examine this issue in detail.
Let us move on to our agenda. The floor goes to Minister of Energy Sergei Tsivilev.
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