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Russia starts deliveries of gas to China via Power of Siberia pipeline

The official opening ceremony was attended by Russian President Vladimir Putin and Chinese President Xi Jinping via a TV link-up

© REUTERS/Maxim Shemetov

MOSCOW, December 2. /TASS/. Russia has started gas supplies to China via the Power of Siberia pipeline on Monday. The official opening ceremony was held on Monday and was attended by Russian President Vladimir Putin and Chinese President Xi Jinping via a TV link-up.

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Power of Siberia launch brings Sino-Russian energy cooperation to new level, says Putin

Gazprom CEO Alexei Miller welcomed the two leaders from the Atamanskaya compressor station on the border with China.

"Dear Vladimir Vladimirovich, allow me to give a command to open the pipeline valve," Miller said addressing to President Putin.

On receiving Putin’s permission, the head of Gazprom said: "Dear Vladimir Vladimirovich, dear Xi Jinping, the valve has been open. Gas is flowing to the gas transmission system of the People’s Republic of China."

Initially, the opening of the pipeline was planned for December 20 but the construction was completed ahead of schedule.

Power of Siberia

The gas pipeline’s total length is about 3,000 km. Its capacity is 61 bln cubic meters of gas per year, including 38 billion cubic meters for export. The route of the gas transmission system is along the operating East Siberia - Pacific Ocean main oil pipeline, making possible to optimize infrastructure and power supply costs.

Chayanda and Kovykta gas fields with reserves of 1.2 trillion and 2.7 trillion cubic meters of gas respectively are the resource base for the Power of Siberia gas pipeline. Development of the Chayanda’s gas pool started in 2015. The design production on the field is planned as 25 bln cubic meters of gas annually. Production on the Kovykta field will start after 2022. Its production will also be 25 bln cubic meters of gas per year.

The ‘eastern route’ agreement (from Blagoveshchensk to China) was signed with CNPC on May 21, 2014. The total price of the contract on annual supplies of 38 billion cubic meters of gas to China amounted to $400 bln.

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