Transneft Installs its Pipe in Defiance of the Law

Feature story - 10 November, 2004
November 10, 2004. Moscow. Today Greenpeace Russia received evidence of illegal activity of Transneft company from the General Prosecutor's office. The prosecutor's office made a statement to Transneft about elimination of offences before and during public hearings. According to the law, the company had to inform the public about the development of the new project of "Eastern Siberia-Pacific Ocean" pipeline beforehand, before the hearings. However, necessary documents - "Environmental Impact Evaluation" (EIE) - were not submitted in time. Moreover, Transneft (also in defiance of the legislation) under various pretexts refuses to provide organizations carrying out public assessment of these documents, though it is bound to do this according to the Federal Law "On Environmental Impact Assessment".

Sunset at the Lake Baikal

On this ground Greenpeace Russia, as one of the initiators of the public environmental impact assessment, addressed the Prosecutor's office with a demand to take measures toward Transneft company.

The committed offences can only be eliminated by means of the second public hearings. All demands and comments of members of the public must be taken into consideration. This means that the procedure of the state environmental impact assessment must be suspended until the above mentioned offences are eliminated.

"The project of the pipeline is tremendous: 4188 kilometres are laid out through the permafrost, through the territory with the seismic activity of up to 11 magnitude, with complex geographical, geological and hydrological conditions. - says Roman Vazhenkov, Greenpeace Russia Baikal campaign coordinator. - And if there are so many offences made during its planning, what's going to happen during the construction"?

The oil pipeline is going to cross the largest river of the Baikal basin - Verkhnya Angara River. A rupture of the pipeline and pollution of this river will eventually result in the pollution of the Baikal Lake itself. The route is also going to cross the Amur River, upstream of the Khbarovsk - the place of the only water intake for a city with a population of million people. It also crosses preserves, a number of reserved territories; it threatens the last remaining Far Eastern leopards. According to some scientists, the Perevoznaya bay (the destination of the oil transportation in the Russian territory) is "the worst possible place for the terminal".

In order to inform the company's employees and the public about offences commited by Transneft, on November 11, 2004, Greenpeace is going to carry out a demonstration near the headquarters of Transneft in Moscow.

Additional information

The chronology of the project:

2001. Two companies "Transneft" and UKOS plan the construction of the oil pipeline to China or the Far East. Soon after that UKOS quits the project because of problems with authorities.

2003, autumn. Transneft fails to obtain a positive resolution of the state environmental impact assessment concerning the project of the oil pipeline "Angarsk-Nakhodka" (the pipeline is supposed to cross the territory of the World Natural Heritage Site "Lake Baikal"). Nevertheless, Transneft keeps on working on its project.

2003, spring. The Ministry of Natural Resources of the RF approves a new project of the route on the condition on excluding Baikal. Transneft refuses the project and develops a new one. According to it, the pipeline starts in Taishet and finished at the Perevoznaya bay. The project provides for a considerable length of the pipeline (4188 km), large carrying capacity of the system and, thus, considerable expenses (more than 14 billion USD). To compare: the oil pipeline in Alaska (Transalaska oil pipeline) with more than tree times less length (1270) cost USD 22 billion USD.

The scope of the project:

Because of the fast economic development and the growth of the population of Asian countries on the Pacific coast, the general need of the region for energy annually grows 14% approximately. This stimulates the interest of Russian oil companies to the construction of oil pipeline from the Western Siberia (where there are main oil fields) to the Pacific Ocean. This is the oil pipeline that Transneft company is projecting.

The pipeline will cross about 50 large and small rivers, tens of motor and railways, as well as seismically active areas, where geological breaks are perpendicular to each other. Seismic activity of up to 10-11 magnitude, passages through high mountain ranges, extreme climate and ecological geographical conditions pose a serious threat to construction, use of the pipeline and the provision of its safety.

The cost of the project:

Not long ago Vladimir Putin held a meeting devoted to the development of oil pipe transportation. It revealed that the construction of the pipeline is stopped by at least two things. The first is the budget shortage. The Ministry of Industry and Energy proposed to allot some money from the stabilization fund for the construction (which is especially cynical at the background of the shortage of money in some regions of Russia, necessary for the timely payment of salaries that have not been paid for 6 months. At the moment it's impossible to calculate the exact sum of money necessary for the construction of such a long pipeline. At public hearings in regions, where the route will be organized the sum of 14 billion dollars was stated. At October meeting with the President it was already more than 16 billion dollars. After that Transneft Vice President Sergei Grigoriev reduced the price down to 11billion dollars. And this is the money only to put a pipeline from Taishet to Perevoznaya.

The second obstacle is the lack of developed stocks of energy resources: so far the future pipeline has sufficient developed stocks for only minimum necessary volume of transporting 30 million tons of oil a year, while "Transneft" state company, that actively lobbies the eastern project, has many times declared that the power capacity of the future pipe will be 80 million tons a year. This means that the term of payback of the pipeline is going to grow.

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