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Investment projects planned for realization in Sakhalin region.

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#

Project name (deposit occurrence, enterprise)

Annual project capacity (potential resources, planned production).

Planned period of project construction

Investment capacity

(mln. rbs)

Assumed investor of project, initiator of project.

Level of project readiness and status (presence and development of design and estimate documentation, conclusion of feasibility study, etc.)

1

Construction of oil and gas chemical complex at Ilinskoe village

The project involves constructing of LNG plant, ethylene, polyethylene production plant, methanol producing factory. Oil processing facility.

The complex is expected to have production output of:

-liquefied natural gas-26,2 bln. m3/year

-ethylene-1523,7 thou. tons/year

-polypropylene-168,7 thou. tons/year

-methanol -300 thous. tons/year

-oil products - 4,0 mn. tons/year

214 700,0

Administration of Sakhalin region,

Investor-Russian and foreign companies

The concept of ”Securing the stable work of units at fuel-and-power sector in Sakhalin region” has been developed in 2007.

The document includes the chapter concerning oil and gas sector development of Sakhalin region.

2

Fuel and power complex in Uglegorsk area.

Exploration of coal deposits in Uglegorsk area.

Coal potential in Sakhalin region nowadays is estimated within 2.5 bln. tons of resources and 14,0 bln. tons of undiscovered potential resources. Most perspective coal deposited are considered to be in Uglegorsk area, near Tatar straight. Resources of “Soltsevskoe” coal field are estimated with 534mn. tons of coal. On this basis, 2bln. tons out of total volume of mining in “Solntsevskoe” with 7-8 mn. tons of coal will be observed by the new power plant, constructing of which is planned instead of retired capacity of existing hydroelectric plant and munici

pal housing economy companies. Approximately 1,0 mn tons of coal a year is planned to be transported outside the region and exported to the external markets through the Shakhtersk sea port.

62544,0

Administration of Sakhalin region, investor - Russian and foreign companies

The following documents were developed: coal strip mine - argumentation of investment in research of “Soltsevskiy” coal deposits in Sakhalin region, the Russian Federation.(2006)

Hydroelectric plant - design and estimate documentation planned to be composed under the federal purpose program ”Economical and social development of Far East and Baikal region up till 2013”

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#

Project name (deposit occurrence, enterprise)

Annual project capacity (potential resources, planned production).

Planned period of project construction

Investment capacity

(mln. rbs)

Assumed investor of project, initiator of project

Level of project readiness and status (presence and development of design and estimate documentation, conclusion of feasibility study, etc.)

In order of implementation of export potential in coal industry, constructing of Ilinsk-Uglegorsk railway line is assumed. Fulfilling of project will insure transportation of coal outside Sakhalin region to the countries of Asia Pacific region by means of sea ports of south Sakhalin (Khlomsk, Korsakov). Total capacity of sites - coal mining enterprise-7 mn. tons a year; Sakhalin hydroelectric plant-2.-330Mvt

3

“Mgachi” mine coal recovery.

Research of coal deposits in area of Aleksanrovsk-Sakhalinskiy, Mgachinskoe occurrence of high quality mineral coal marked G6 is located at Mgachi village of Aleksandrovsk-Sakhalinskiy area on western coast of central part of Sakhalin. Geological reserves include 94,5 mn. tons. Manufactory reserves include 17 mn. tons. In deposit occurrence at central part from 1937 to 1996 the mine worked at production capacity of 600 thou. tons a year and was shut due to breakdown. Reconstruction of mine will give the opportunity to supply the lacking amount of mineral coal in two areas of the region and will allow to increase the volume of Sakhalin coal export. Capacity of mine-1100 thou. tons/year. .

12000,0

Administration of Sakhalin region, investor - Russian and foreign companies

Pre project activities in recovery

(rebuilding) of “Mgachi” mine coal of Mgachinskiy mineral coal deposits area. Sakhalinugleproect, 2001.

N

#

Project name (deposit occurrence, enterprise)

Annual project capacity (potential resources, planned production).

Planned period of project construction

Investment capacity

(mln. rbs)

Assumed investor of project, initiator of project

4

Constructing a factory producing wide range of timber products, combined with production of housing sets

Constructing a timber mill production unit for covering the inner demand in quality timber, production of wooden housing sets of different types and supplying wood materials for export.

Lead-in power 300 thous. m3 of ready made timber materials of 1-2-3 grade(square edge timber and edge-unsurfaced lumber)

3935,0

Administration of Sakhalin region, investor - Russian and foreign companies

5

Constructing of livestock complex.

Constructing of live stock complex for cattle of 600 animal stock of loose housing nowt, including construction of milk processing factory with usage of modern European technology equipment for production of more than 30 items of products and establishing food resource base. Total production capacity - 6400 tons of output products a month

558,0

Closed joint stock company “Zarechnoe”, Investor-loan offices.