State-private partnership - the growth factor of gasification of Russian region

Abstract

The gasification of Russian regions is one of the most important problems for the national economy. The development of the gas supply system contributes to the socio-economic development of the regional economy, to the increase increasing the level and quality of life, and to the solution of the key environmental issues. The Krasnoyarskiy Kray is the only region in the east of the country that has a significant resource potential of natural gas but at the same time, it can’t be connected to the trunk gas pipeline in the short and long term perspective. The purpose of the study is to assess the efficiency of investments in the construction of gas supply facilities, gasification, and their exploitation in the southern and central regions of the Krasnoyarskiy Kray. In this study authors solved the following objectives: we systematized information about the current state of the Krasnoyarskiy Kray gasification and the prerequisites for its development (resource base and transport infrastructure); we assessed economic efficiency of the investments in the construction, gasification, and exploitation of gas supply facilities in the southern and central regions of the Krasnoyarskiy Kray; we formulated proposals to ensure economic efficiency using the mechanism of public-private partnership. The authors recommend an option according to which federal budget investments will amount to 70% of their total investment in the Krasnoyarskiy Kray gasification program. Under this option, the selling price of gas will drop to 4708 rubles per 1000 cubic meters of natural gas excluding VAT. Organization of production, preparation for transport, and transportation of natural gas in the central regions of the Krasnoyarskiy Kray will create new highly paid jobs, significantly increase the GRP, and improve the demographic situation.

Gasification as a way to combat air pollution in Krasnoyarsk

“…and operating costs of 746.2 billion rubles. with a payback period of 22 years, the gas tariff will be 5.7 rubles per cubic meter [15]. Such calculations take into account natural gas consumption of about 8 billion cubic meters per year, which is a fairly high figure (such volumes may require gasification of adjacent regions).…”

“…Preliminary volumes of prospective consumption of natural gas in the Krasnoyarsk Territory due to gasification are estimated at about 3.5 billion cubic meters [15], of which up to 1 billion cubic meters can be households.…”