12 Jan 2023 10:12

Work on gas supplies to China from Far East on schedule, pipeline through Mongolia on drawing board - Gazprom

MOSCOW. Jan 12 (Interfax) - Work on the project to supply Russian gas to China along the Far Eastern route is proceeding on schedule, Gazprom said after a meeting of its coordinating committee with China National Petroleum Corporation (CNPC).

"Special attention was devoted to the progress of the implementation of agreements in accordance with the purchase-sale contract for gas along the 'Far Eastern' route that the companies signed in February 2022. This is the second long-term contract between Gazprom and CNPC for supplies of Russian pipeline gas. It was noted that work on the project is proceeding according to the schedule set by the parties," the Russian gas giant said in a press release.

Gazprom representatives also informed their Chinese colleagues about progress on the design of the Soyuz Vostok pipeline to supply Russian gas to China through Mongolia.

Gazprom said it "reliably supplies gas to China along the 'eastern' route [through] the Power of Siberia gas pipeline." The companies agreed on dates for carrying out scheduled maintenance work on the pipeline in the spring and fall of this year.

At the meeting the companies also discussed cooperation on underground gas storage, training of workers, and research and technology.

Russia began supplying gas to China through the Power of Siberia pipeline from the Chayanda field in Yakutia at the end of 2019. The Kovykta field in the Irkutsk region was connected to the pipeline system in December.

Supplies are due to be ramped up to 38 billion cubic meters per year in the first five years. Gazprom supplied 10.39 bcm of gas to China via the pipeline in 2021, exceeding contracted figures by 390 million cubic meters. Supplies are expected to total 15 bcm in 2022 and 22 bcm in 2023.

In February 2022, the countries signed a long-term contract to supply Russian gas to China along the so-called Far Eastern route. Once this project reaches full capacity, Russian pipeline gas exports to China will increase by 10 bcm to 48 bcm per year.

In 2020, Gazprom began assessing the possibility of supplying gas to China through Mongolia in the amount of up to 50 bcm per year. Design and survey work for the construction of the Soyuz Vostok gas pipeline began in February 2022. This pipeline through Mongolia would be an extension of Russia's Power of Siberia-2 pipeline.