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China launches construction of Power of Siberia gas pipeline extension on its territory

The Power of Siberia is a gas transportation system to deliver gas the Yakutsk and Irkutsk gas production centers in Siberia to Russia’s Far East and China

© ITAR-TASS/Valery Sharifulin

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MOSCOW, June 2. /TASS/. China has launched the construction of the Power of Siberia gas pipeline extension on its territory, with the first butt welding planned for the end of June, Gazprom reported Tuesday after the meeting of the company’s CEO Alexey Miller with First Vice Premier of China's State Council Zhang Gaoli and CNPC Chairman Wang Yilin on Tuesday.

The two sides gave big points to the process of implementation of the project on Russian gas deliveries to China via the eastern route. The operations on the Russian territory are on schedule.

The participants of the meeting discussed in detail the process of negotiations on natural gas supplies to China via the western route and the schedule for further actions related to the contract signing.

According to Alexey Miller speaking after the negotiations, "the signing of the contact on the eastern route created a firm base." "In the negotiations on the "west" we’ve moving forward at a good rate. Signing of the key conditions on the western route is an important step," he added.

The Power of Siberia is a gas transportation system to deliver gas the Yakutsk and Irkutsk gas production centers in Siberia to Russia’s Far East and China. Its planned capacity is 61 billion cubic meters per year. The pipe’s total length is 3,968 km. The estimated construction cost is $21.3 bln. The pipeline route will run along the existing route of the Eastern Siberia - Pacific Ocean oil pipeline.

As TASS reported earlier on May 21, 2014 Gazprom and China National Petroleum Corporation signed a $400 bln contract on gas supplies to China along the eastern route in the next 30 years. The Eastern route stipulates supplies of 38 bln cubic meters of Russian gas annually via the Power of Siberia pipeline.

On November 10, 2014 Gazprom and CNPC signed a framework agreement on natural gas supplies from Russia to China through the western route. Natural gas supply via the pipeline is possible after 2020, with design capacity of 30 bln cubic meters a year to be reached within the next 6 years. On May 8, 2015 Gazprom and CNPC inked an agreement on the main conditions for pipeline supplies of natural gas from Russia to China via the western route.

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