Russia expects to reach agreement with China on new gas pipeline soon
Russia is expecting to reach an agreement with China on the ambitious Power of Siberia 2 gas pipeline project as soon as possible, according to Russia’s Deputy Prime Minister Alexander Novak.
Russian energy giant Gazprom and China's CNPC are negotiating the terms of gas supplies via the Power of Siberia 2 gas pipeline, the parties may reach an agreement in the near future, Novak told reporters.
"As for the gas pipeline, commercial negotiations are underway between Gazprom and CNPC on the terms of the contract and supplies. As for the gas pipeline itself, it runs through the territory of Mongolia, and a feasibility study has already been done there, survey work is underway. We expect that the companies will come to an agreement in the near future," he said.
Power of Siberia 2 is a planned gas pipeline that will go through the territory of Western Siberia to China. Its maximum capacity will reach 50bn cubic meters per year.
Russia and China discussed the issue of gas supplies during a meeting of the intergovernmental commission on energy. According to Novak, Russian gas exports to China at the end of this year through the Power of
Siberia pipeline will exceed 22bn cubic meters.
Energy cooperation between Russia and China is at its highest throughout its history and makes up to about a third of the trade turnover, Novak said after the meeting.
"We discussed the issue of supplies. This year, supplies will surpass the plan. There were 22bn cubic meters, and in 10 months [the volume] reached almost 19bn cubic meters. That is, for the year as a whole it will be higher than 22bn cubic meters," he said.
On December 16, Gazprom set a new historical record for daily gas supplies to China via the Power of Siberia pipeline. Previously, the company noted that since mid-november it had significantly increased the volume of gas supplies to China in accordance with the previously signed additional agreement.
"Energy cooperation between Russia and China is developing progressively. It is at present at the highest level and cooperation in the energy sphere amounts to about a third in the total trade turnover, which crossed the level of $200bn during first eleven months of this year so far," Novak said.
Russia supplied more oil and petroleum products to China in ten months of this year than over the last year, the official noted. Russian coal exports to China will be record high and stand at more than 100mn metric tonnes in 2023, he added.
Power of Siberia 2 is a planned gas pipeline that will go through the territory of Western Siberia to China