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MOSCOW, June 29. /TASS/. Russia’s largest gas producer has cut expenditures on the Power of Siberia pipeline to 170-180 bln rubles ($2.8 bln) from 200 bln rubles, Gazprom Deputy Chairman of the Management Committee Andrey Kruglov said Wednesday.
"As for the Power of Siberia last year I said that financing would stand at around 200 bln rubles in 2016 and 250 bln rubles in 2017. Now we see that in 2016 financing of the Power of Siberia will be around 10% lower than planned, meaning around 170-180 bln rubles," he said, adding that next year’s expenditures "will be around 250 bln rubles, maybe slightly higher."
Gazprom is building the Power of Siberia gas pipeline, which will pump natural gas from the giant Chayanda oil and gas condensate deposit in Yakutia and the Kovykta gas condensate field in the Irkutsk Region in Eastern Siberia to deliver gas to the domestic market (via Khabarovsk to Vladivostok) and further on for exports to China. The pipe's section aimed for China will be built near Blagoveshchensk. The eastern route stipulates the supply of 38 billion cubic meters of natural gas to China annually within 30 years. The project is worth $400 bln.