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MOSCOW, April 25. /TASS/. Liberalization of LNG exports negatively affects the talks on Russian gas supplies to China, Gazprom Deputy CEO Vitaly Markelov said in an interview with Gazprom magazine.
"I have to say that the talks with China National Petroleum Corporation have been negatively affected by liberalization of Russian exports of liquefied natural gas (LNG) as the Chinese partners used the argument of the possibility of receiving Russian gas in the form of LNG as a bargaining tool regarding the pricing issue. This negatively affects the talks with the Chinese side on other projects related to Russian gas supplies," he said.
When asked about potential gas supplies by independent gas producers via the Power of Siberia gas pipeline Markelov said that Gazprom had made a purchase/sale agreement with China National Petroleum Corporation, which stipulates natural gas supplies in the amount of 38 bln cubic meters for a 30-year period via the "eastern route." "In case the Chinese side is interested we’re capable of boosting the volume of gas supplies via the route. However, the Chinese side says the current contract volume is sufficient for satisfying the existing and forecasted demand for Russian gas imports in this region," he said.
The Power of Siberia is a gas transportation system to deliver gas from the Yakutsk and Irkutsk gas production centers in Siberia to Russia’s Far East and China. The plan is to finalize the construction of the pipeline simultaneously with putting into operation the Chayandinskoye oil and gas condensate field in the fourth quarter of 2018.