Power of Siberia pipeline update

China started construction last week of a pipeline to receive Russian gas, Russian state gas company Gazprom has announced.

Russia and China clinched a US$400 billion gas deal last year to build the Power of Siberia pipeline. Russia will invest US$55 billion for the Russian section, including bringing new gas fields on stream.

China's CNPC, Gazprom's partner on the project, said its pipeline company had signed an agreement with CNPC's pipeline project team on building a portion of the Russia-China eastern gas pipeline starting from Heihe on the border and running to Changling in Jilin province.

The report, posted on the company's website last week, said it marked "the start of the execution stage from preparation phase."

It added that the Chinese side of a trunkline would cover nine provinces and cities and would end in Shanghai on the east coast. The whole trunkline will be split into three sub lines, each of which would need regulatory approval.

The Power of Siberia pipeline should deliver 38 billion m3/yr of gas to China over 30 years, with first deliveries scheduled for 2019.

Edited from various sources by Elizabeth Corner

Sources: The Moscow TimesReuters

Published on 03/06/2015

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