Russia is moving ahead with plans to build a natural gas pipeline to supply the Chinese market with construction reportedly set to begin as early as September.
Russian gas monopoly Gazprom has been looking to Asianin an effort to diversify its markets. Deteriorating relations between Moscow and Brussels as well as ongoing disputes over gas debt in Ukraine, which transports the bulk of Russian gas supplies to Europe, have prompted the Russian gas giant to accelerate plans to feed the Chinese market.
On August 19, Gazprom CEO Alexey Miller held a working meeting with Chinese Ambassador to Russia LiHui, addressing the issues of strategic cooperation in the gas sector as well as arranging the Russian natural gas supply to China via the eastern route, Gazprom said in a press release.
“It was pointed out that Gazprom made energetic efforts to build the required gas production, transmission and processing capacities in Eastern Russia. Particularly, the preparations for the construction ofthe Power of Siberia gas pipeline were highlighted,” Gazprom said in a press release.
The Chinese ambassador stressed during the meeting that Gazprom was adriving force ofthe Russian-Chinese cooperation.
After long negotiations over price, Gazprom and China National Petroleum Corporation (CNPC) signed the contract for the Russian pipeline gas supply toChina on May 21, which Miller called the biggest contract inthe entire history of Gazprom.
The 30-year contract stipulates gas supplies inthe amount of 38 billion cubic metres of gas per year.
The eastern route provides for the Russian natural gas supply toChina via the Power of Siberia gas trunkline – the unified gas transmission system encompassing the Yakutia and Irkutsk gas production centers designed for supplying natural gas toRussia’s Far East and China.
On June 18, Gazprom noted that it speeded up the construction ofnecessary gas production, transmission and processing facilities almost immediately after the contract with China had been signed. Gazprom said the pre-development of the Chayandinskoye field as well as the construction ofthe Power of Siberia gas transmission system (GTS) and the Amur Gas Processing Plant were infull swing.
http://www.neurope.eu/article/eu-aside-russia-pushes-china-gas-pipe