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Putin on Gazprom-China gas deal: Russia has enough resources for 50 years

Published time: May 23, 2014 10:22
Edited time: May 23, 2014 15:48
Russian President Vladimir Putin (L) is greeted by Chinese President Xi Jinping.(AFP Photo / Mark Ralston )

Russian President Vladimir Putin (L) is greeted by Chinese President Xi Jinping.(AFP Photo / Mark Ralston )

Russia has more than the estimated 3 trillion cubic metres in natural gas reserves in its gasfields, enough to last for 50 years, Russia’s President has said commenting on the 30-year $400 billion gas deal with China.

“This deal is for 30 years, while I think there’s enough supply for 50 years. They are underestimated. Extractable reserves at the two deposits that we would introduce – Kovykta and Chayanda – are 1.5 trillion cubic metres of natural gas reserves each. Which means in total there’s 3 trillion. In reality, I repeat, there’s more,” said President Vladimir Putin talking to the representatives of global businesses at the 18th International Economic Forum in St Petersburg.

Commenting on the historic gas deal with China, Putin said Russia has abundant gas resources to supply not only China, but also the Russian provinces.

“It’s very important for us. This project is multi-dimensional, because it gives us the opportunity... to develop the eastern provinces, to construct a branch gas supply system there,” Putin said.

Putin also said that both routes - eastern and western - through the Power of Siberia and Altai pipelines will be developed.

On Wednesday, Gazprom signed its biggest deal in history, a $400 billion 30-year contract with CNPC under which the company will supply 38 billion cubic meters of gas to China per year. With Russia starting supplies in 2018.

The deal involves infrastructure investments of more than $70 billion from both sides becoming the world's largest construction project. Russia will provide $55 billion up front and China $22 billion for pipelines within their borders.

In 2013, China consumed about 170 billion cubic meters of natural gas and is expected to consume 420 billion cubic meters per year by 2020.

Comments (156)

 

Marco Hsiao 28.05.2014 01:45

[A great commercial deal in 21st century]

The cooperation of Sino-Russia has enormous potential. China's northeast provinces (Heilongjiang province, Jilin province) and Xinjiang province will be more prosperous; Russia East will become prosperity, too. Possibly after 2019 East Asia will replace Europe as new world center; President Putin's "Look East Policy" will be proved to be knowledgeable.

 

Blue 25.05.2014 15:55

[quote name='Paul Ankin' time='25.05.2014 15:02']

Sau di Arabia, has one of the largest reserves of natural gas in the gulf. Proved natural gas reserves are over 7 trillion cubic metres (250 trillion cubic feet). Global production in 2009 reached 29 billion barrels (4.6×109 m3) of oil and 3 trillion cubic metres (110 trillion cubic feet) of natural gas.[6] but due to its sizeable domestic gas markets, is "unlikely to become LNG exporters anytime soon". Saudi Arabia is prioritising upstream gas investment, but for use in the domestic power generation market, not for export.[7]
wikip edia Energy_in_Saudi_Arab ia

 

Paul Ankin 25.05.2014 15:02

Putin, you really must be scared with Saudi Arabia offer of lowering gas prices. You understand that EU is not dependent from your gas any more, right? Additionally I must inform you that there is a great shift from gas energy to renewable energy sources after you shown yourself as unpredictable aggressor. More you talk about your deal with China and more you smile on the photos shoving that deal the more you show that you are sooo scared.

View all comments (156)
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