The construction of the Nord Stream-2 gas pipeline is nearing completion. The US is trying in the dirtiest ways to hold onto the European energy market. Meanwhile, Vladimir Putin launched the supply of natural gas to China through the Power of Siberia gas pipeline.
The ceremony of launching the gas pipeline with the Russian leader was shared by Chinese President Xi Jinping.
Under a bilateral agreement, Gazprom will have to supply up to 38 billion cubic meters of gas per year to China, but the company will achieve these indicators in stages. The first 6 months will pass in the commissioning mode, and Gazprom will reach the agreed supply volumes by 2025.
“At this stage, we can only talk about the volumes stipulated by the contract on gas supplies to China, since next year will be our first experience”, — commented the head of the Gazprom Export Department Andrei Zotov.
So far, the pipeline is connected only to the Chayandinskoye field, and by 2025 Kovyktinskoye will also be involved. At the same time, another pipe section with a length of approximately 2.3 thousand kilometers will be built.
The Power of Siberia gas pipeline has become Gazprom’s largest investment project. At the time of the start of the project in 2014, its cost was estimated at 55 billion dollars. At the same time, the cost of the contract with China, according to Gazprom, is $ 400 billion. It is designed for thirty years and implies a total supply of over 1 trillion cubic meters of gas.
It is worth noting that China is becoming the fastest growing gas market on the planet. According to an analysis by the International Energy Agency, over the next two decades, China will provide a thirty percent increase in global gas trade. In this regard, Gazprom is already considering additional ways of supplying gas to China in addition to the Power of Siberia gas pipeline.