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Gazprom and CNPC to start gas supplies via Power of Siberia in 2019

Gazprom will start gas supplies to China via the so called eastern route or Power of Siberia pipeline on December 20, 2019.

Gazprom and CNPC to start gas supplies via Power of Siberia in 2019 Gazprom and CNPC to start gas supplies via Power of Siberia in 2019


Gazprom will start gas supplies to China via the so called eastern route or Power of Siberia pipeline on December 20, 2019, Gazprom´s CEO Alexei Miller told on July 4, 2017.

 

The Power of Siberia is a 3,000 kilometer (1,864 mile) pipeline designed to transfer gas from production centers to consumers living in the Russian Far East and China.

On May 21, 2014, Gazprom and CNPC signed the Sales and Purchase $400 billion agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline).

 

The 30-year Agreement provides for gas deliveries to China in the amount of 38 billion cubic meters per year, is oil-pegged and contains a take-or-pay clause.

 

«As part of negotiations, an agreement was signed on July 4, 2017, between Gazprom and our Chinese partner on the date of the start of gas supplies via the Power of Siberia pipeline. It is December 20, 2019,» Alexey Miller told reporters, adding there is no doubt that deliveries will start on time.

 

He also said by then the remaining 2,156 kilometers of the pipeline would be built.

According to Miller, China’s growing gas consumption exceeded 200 billion cubic meters last year and is expected to reach 300 billion cubic meters soon.

 

Russia will be one of the leading providers of the natural gas which is increasingly needed by China.

The Power of Siberia pipeline is one of the biggest projects between the 2 countries. The deal took more than a decade to negotiate.

 

Moscow and Beijing plan to build another pipeline Power of Siberia-2 or the western route that will deliver another 30 billion cubic meters of Russian natural gas.

 

To read the full story in Russian.

 

Source : Neftegaz.RU