Russia, China will determine timeframe, financing scheme for Power of Siberia 2 gas pipeline next year - Russian energy minister
VLADIVOSTOK. Sept 4 (Interfax) - Russia and China have signed a binding memorandum on the project to build the Power of Siberia 2 gas pipeline with a capacity of 50 billion cubic meters of gas per year; the project has been completed at the level of a preliminary feasibility study, and now the financing scheme for the project and other issues need to be finalized quickly, Russian Energy Minister Sergei Tsivilev told reporters on the sidelines of the Vladivostok Economic Forum (VEF).
"The signed memorandum takes into account the main parameters - it will pass through Mongolia, and the supply volume is 50 billion cubic meters per year. The project is very complex; it will require the construction of large pipeline lines, so now we will move on to active work to finalize this project, and then we will be able to speak specifically about the timelines and finances of this project. So far, all this has been done at the pre-feasibility study level," Tsivilev said.
"Now we will have to work out both the financing schemes and everything else. Without signing this memorandum, further work was impossible. Now we have freedom of action; we have been given permission, so we will finalize this scheme quickly," he said, noting that the scheme could be worked out next year.
Tsivilev also said that design work is underway to increase the capacity of the already built Power of Siberia gas pipeline from 38 bcm to 44 bcm of gas per year, as agreed during the recent visit to China.
"Design work is currently underway to increase capacity. After they are completed, we will announce specific timelines. For now, the design capacity is fixed at 38 billion [cubic meters]; to reach the level of 44 [bcm], additional changes to the project will need to be made," he said.
He recalled that a decision was made to increase gas supplies via the under-construction Far Eastern route from 10 bcm to 12 bcm per year.
