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Gazprom plans to construct more than 600 km of Power of Siberia in 2017

"As of January 1, nearly 700 km was welded, 490 km was laid. In 2017 more than 600 km is planned for construction," Member of Gazprom Management Committee Oleg Aksyutin said

MOSCOW, February 28. /TASS/. As of January 1, 2017, Gazprom completed almost 700 km of Power of Siberia gas pipeline for gas supplies to China. More than 600 km of the pipeline is planned for construction in 2017, according to Member of Gazprom Management Committee Oleg Aksyutin.

"As of January 1, nearly 700 km was welded, 490 km was laid. In 2017 more than 600 km is planned for construction," Aksyutin said.

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.

Gazprom investments 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).

The 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.

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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