China and Russia step up work on new gas route – CNPC

The Far Eastern project is estimated to have an annual capacity of 10 billion cubic meters

Russian energy company Gazprom is cooperating with China to accelerate the launch of gas supplies via the Far Eastern route, China National Petroleum Corporation (CNPC) Vice President Xie Jun has revealed. 

The Far Eastern route envisages supplies of Russian natural gas to China from the shelf off Sakhalin Island.

While addressing the plenary session at the St. Petersburg International Gas Forum, Xie Jun reportedly said: “Our company and Gazprom are striving to build a closer energy partnership and are systematically accelerating the implementation of the gas supply project along the Far Eastern route.” 

In February, Moscow and Beijing sealed an agreement for additional natural gas supplies to China via the Far Eastern route. The project involves the construction of a cross-border section across the Ussuri River between the already operational Russian pipeline and the Chinese city of Hulin. After reaching full capacity, the route will allow for the delivery of 10 billion cubic meters of Russian pipeline gas to China annually.

Russia currently supplies gas to China via the Power of Siberia pipeline, a section of the so-called Eastern Route, under a bilateral 30-year agreement. Deliveries started in 2019, and the pipeline is expected to reach its full operational capacity of 38 billion cubic meters of natural gas annually by 2025.

READ MORE: Chinese imports of Russian gas soar

Gazprom has also been assessing the possibility of supplying gas to China via the Power of Siberia 2 pipeline through Mongolia. The conduit is expected to allow for the delivery of up to 50 billion cubic meters of gas annually, and its construction is scheduled to start in 2024. Once all the pipelines are fully operational, the volume of Russian gas supplies to China could reach nearly 100 billion cubic meters annually.

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