Vladimir Putin and XI Jinping launched the supply of gas to China through the pipeline «Power of Siberia»

The press service of the President of Russia

Russian President Vladimir Putin and Chinese President XI Jinping has attended the launch of the gas pipeline «Power of Siberia». Specially between the two countries was organized a teleconference

The press service of the President of Russia

Russian President Vladimir Putin and Chinese President XI Jinping has attended the launch of the gas pipeline «Power of Siberia». Specially between the two countries was organized the teleconference, writes «Rossiyskaya Gazeta». The Russian President said that the «Power of Siberia» displays the energy cooperation of Russia and China to a new level.

«In difficult climatic conditions in Yakutia from scratch created a new center of gas production being developed is unique in its size and reserves of the Chayandinskoye field, deployed in the construction pipeline for completion of the project, its length on the territory of Russia will amount to about three thousand kilometers,» — said Putin.

In turn, the Chinese President XI Jinping urged the government to ensure safety, reliability and environmental friendliness in the operation of the pipeline. «The Eastern branch of the Russian-Chinese gas pipeline is a milestone project of bilateral energy cooperation, he is a model of deep integration of mutually beneficial cooperation between our countries. The pipeline is the beginning of a new stage of our cooperation», — said XI Jinping.

In may 2014 Gazprom and Chinese CNPC signed a contract on Russian gas supplies to China via the Eastern route. The contract of purchase-sale of Russian gas via the «Power of Siberia» between «Gazprom» and «China national petroleum Corporation» (CNPC) was signed in may 2014 for a period of 30 years. It involves the delivery to China of 38 billion cubic meters of gas per year. This level of supply should emerge in the next five years, in the meantime, a period of increasing supply volumes specified at the level of 5 billion cubic meters in 2020, 10 billion cubic meters in 2021 and 15 billion cubic meters in 2022. About the beginning of construction of the pipeline became known in April 2015.

«Power of Siberia» — the largest gas transmission system in the Asian part of Russia. Earlier, the Kremlin noted that the regions that are involved in it, subsequently receive additional infrastructure, additional jobs. In the first stage of gas supply on the «Power of Siberia» will be carried out with the Chayanda field in Yakutia, and then to the pipeline connecting the Kovykta field, located in Irkutsk region.

Magistral convey gas from the Irkutsk and Yakutia gas production centers to the Russian consumers in the far East and China. The pipeline route passes through the Irkutsk region, the Sakha Republic (Yakutia) and Amur region.
The total amount of the contract amounted to about $400 billion gas pipeline Construction lasted five years and cost about 1.1 trillion rubles.

Also the parties have discussed the possibility of increasing capacity of the pipeline. In 2015, Gazprom and China national petroleum Corporation (CNPC) concluded an agreement on the development of the Western route pipeline gas supplies («Power of Siberia 2»).

Aggregate production from the two deposits will amount to about 50 billion cubic meters of gas per year. In addition to exporting gas to China, it will also allow for the internal needs of Eastern Siberia and the Far East.
An important element of the technological chain of gas supply on the «Power of Siberia» will become the Amur gas processing plant. He will select from additional gas components, which you can earn — propane, butane, ethane and helium. Implemented a project to expand capacity of the pipeline Sakhalin — Khabarovsk — Vladivostok at the site of Komsomolsk-on-Amur to Khabarovsk.

As for China, Russian pipeline gas will Supplement deliveries from Chinese fields and can be cheaper than LNG, which is delivered by tanker. According to experts, by 2040 the demand for gas in China could grow to four or five times on the Asian region as a whole — 2.5 times.

Bloomberg called the «Power of Siberia» insurance of Russia in case of deterioration of relations with Europe and admitted that after the gas goes to the East, European consumers may have to pay more. But to oppose this pipeline in the European direction is incorrect, experts say.

So, the resource base for «Power of Siberia» was never intended for deliveries to Europe, has explained the General Director of national energy Institute Sergei Pravosudov. It was always planned to be used for the Eastern regions of Russia and supply to countries in the Asia-Pacific region. According to Kulagin, it was discussed 20 years ago, but there was neither the demand nor the technical capacity to implement such a project.

In addition, in Europe, in contrast to the East runs the long-established extensive gas transportation system. Because the new projects to connect is relatively easy — they are embedded in already existing highways, explained Vyacheslav Kulagin. In the East, the projects will have to develop almost from scratch, which is costly but provides incentives for economic development.

Also the volume of supply in China is not comparable with supplies to Europe, where in 2018, «Gazprom» has sent more than 200 billion cubic meters of gas. In addition, unlike the constantly criticized «Nord stream — 2», the Siberian pipeline is the project of two countries without any transit obstacles and, consequently, external leverage.

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