Zhidkoye zoloto? Environmental Aspects of Natural Gas Transportation from the Sakha Republic

Abstract

The Sakha Republic, Russia’s largest administrative unit, could in ten years time be well on its way to becoming a major source of natural gas for a number of Pacific Rim nations, where demand for LNG (Liquefied Natural Gas) is growing rapidly. Already, Japanese and South Korean consortia are engaged in pre-feasibility studies for a trans-continental gas pipeline linking the Sakha gas fields with the Korean peninsula and Honshu. This pipeline will be faced not only with political obstacles, such as those evident within Russia and on the Korean peninsula, but also a wide variety of constraints imposed by regional environmental peculiarities. These would create special problems for a long-distance gas pipeline. The environmental implications are far reaching. The West Siberian oil and gas region has suffered severe environmental damage caused by the undesirable interactions between pipelines and the surrounding environment. Pipeline construction activities have also contributed to the overall situation. In view of tlie climatic variability, variations in permafrost continuity and numerous mountain ranges in particular that characterize the Russian Far East, this thesis argues that a gas pipeline from the Sakha Republic should be laid eastwards rather than southwards, direct to markets. A pipeline transmitting gas to a liquefaction plant on the Sea of Okhotsk coast for onwards shipment by LNG tankers, would face fewer environmental constraints, would be relatively economical and would be favourable from the point of view of the republic's human geography. The reasons behind this contention are examined in detail. Also considered are current developments in environmental legislation for foreign investors in Russia's oil and gas sectors.