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Gazprom plans talks on ‘western route’ supplies in China soon

China and Russia are discussing the 'western route' gas supplies today but the main talks are expected during the visit of Gazprom's CEO to China

© Stanislav Krasilnikov/TASS

BEIJING, September 20. /TASS/. Russia’s top gas producer Gazprom plans to hold talks on the so-called ‘western route’ gas supplies in the near future in China, Deputy Prime Minister Arkady Dvorkovich said following the meeting of the Russian-Chinese intergovernmental commission on fuel and energy cooperation on Wednesday.

Read also

Russian Gazprom, Chinese CNPC start talks on gas deliveries timeframe

"(The ‘western route’ issue - TASS) was not discussed (at the meeting) in detail. It was stated that, on the one hand, the interest in the construction of the route remains, on the other hand, the approaches regarding its implementation are different. It has been decided to continue discussion in a less official format today, though the main talks are expected during the visit of Gazprom CEO Alexei Miller," he said.

According to Dvorkovich, "the talks on the Far Eastern route have reached more progress".

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.

In 2017, Gazprom’s investment in the Power of Siberia pipeline 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.

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