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Gazprom and CNPC confirm schedule compliance in gas supplies via 'Eastern route'

MOSCOW, February 10. /TASS/. Gazprom and China National Petroleum Corporation (CNPC) have confirmed schedule compliance with regard to gas supplies from Russia to China via the Eastern route at a regular meeting of the joint coordination committee in Beijing, the Russian gas holding said in a statement.

Read also

Agreement on eastern route gas supplies to China approved by Russian government commitee

"At a meeting the parties, in particular, discussed supplies of natural gas from the Russian Federation to China via the "eastern" route. It was noted that the project is being carried out in compliance with the schedule," the statement said.

At the meeting the participants also discussed cooperation on underground gas storage and gas power generation in China, the use of gas as a motor fuel as well as scientific and technical cooperation.

Currently, 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.

Investments of Gazprom in the Power of Siberia pipeline in 2017 increased to 158.811 billion rubles ($2.7 bln) from 76.162 billion rubles ($1.3 bln).

Terms of the partnership in design, construction and operation of the cross-border zones of the gas pipeline are defined by an intergovernmental agreement dated October 13, 2014

In 2015, Gazprom and CNPC signed an agreement on the basic conditions of pipeline gas deliveries from Western Siberia to China via the "Western" route (Power of Siberia-2 pipeline). Initially supplies are envisaged at 30 billion cubic meters of gas per year.

Read also

Source says Gazprom, CNPC may agree on construction of underground gas storage in China

Also in 2015 Gazprom and CNPC signed a memorandum of understanding on the project of pipeline shipments of natural gas to China from Russia’s Far East.

On June 25, 2016, Gazprom and CNPC signed a memorandum of understanding on gas storage and power generation in China.

Previously, Gazprom CEO Alexei Miller said that the contract for the supply of Russian gas to China through the Power of Siberia pipeline came into force in May 2015. The supplies will start in 4 to 6 years after the contract’s entry into effect. Accordingly, the gas deliveries to China may start in the period from May 2019 on May 2021.

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