China begins Power of Siberia construction

June 3, 2015

The Power of Siberia pipeline entered the construction phase in China last week, with welding for its first joint scheduled for the end of June.  

Alexey Miller and CNPC's Wang Yilin in China. Image from Gazprom.

A meeting between Gazprom, China National Petroleum Corporation (CNPC), and the State Council of the People’s Republic of China took place in China to discuss the ongoing negotiations on gas supply to China via the western route, and a schedule of further steps preceding the contract signing.

The Power of Siberia’s western route will see gas supply to China from Western Siberia’s fields in the amount of 30 Bcm a year.

Gazprom said work on the Russian section of the pipeline is running on schedule.

“The inked contract on the eastern route has created a solid foundation. Our talks on the western route are advancing at a good pace. The signing of the heads of agreement for the western route was a milestone event,” said Alexey Miller, chairman of Gazprom Management Committee. “Upon setting the border crossing points, we have ultimately and completely chosen a supply corridor both for the first 30 Bcm of gas from Western Siberia and for further supplies.”

Plans for the Power of Siberia unified gas transmission system (GTS) are to carry gas from Yakutia and Irkutsk production centers through Khabarovsk to the coastal city of Vladivostok. The Chayandinskoye field, which Gazprom estimates to contain 1.2 Tcm of gas reserves, will source the Yakutia gas production center. Irkutsk’s gas will be supplied by the Kovyktinskoye field, which has 1.5 Tcm of reserves. 

The GTS route will cross five Russian regions - Irkutsk Region, the Republic of Sakha (Yakutia), the Amur Region, the Jewish Autonomous Region and the Khabarovsk Territory. 

The first section of the pipeline is schedule to come on stream in late 2017.

On 21 May, Gazprom and CNPC signed a 30-year contract for the Russian gas supply via the eastern route that provides for Russian gas supplies to China in the amount of 38 Bcm per year.

On 8 May, the two companies entered into an agreement for pipeline gas supply from Russia to China via the western route.

At CERAWeek, held in Houston in April, CNPC Economics & Technology Research Institute VP Qian Xinkun said that China’s gas demand is expected to reach 30 Bcm per year by 2020, and 450 Bcm per year by 2030, citing the increase to government policies to reduce air pollution. 

The Power of Siberia’s construction on the Russian side began in September 2014, when the first section of Gazprom’s 4000km, 1420mm-diameter pipeline was joined.

Read more:

CERAWeek: Panel debates Sino-Russia pipeline

GlobalData: Russia oil, tax policies increasingly looking eastward

Demand in Asia dictates project viability

Power of Siberia pipeline construction begins



Current News

BP to Shut West Chirag Platform for Maintenance

BP to Shut West Chirag Platform for Maintenance

Exxon Appoints Bank to Sell Malaysia Assets

Exxon Appoints Bank to Sell Malaysia Assets

Oxy Books Supertanker for a Record $13.25 Mln

Oxy Books Supertanker for a Record $13.25 Mln

Sinopec Resumes Production at Sichuan Gas Processing Unit

Interra Resources Spuds First Well in Kuala Pambuang Block

Interra Resources Spuds First Well in Kuala Pambuang Block

Saipem Wins BP Azerbaijan Job

Saipem Wins BP Azerbaijan Job

Rosneft Makes Discovery Offshore Sakhalin

Rosneft Makes Discovery Offshore Sakhalin

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week