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Gazprom to start gas deliveries to China from 2019

Published time: May 23, 2014 15:04
Edited time: May 23, 2014 15:58
Chairman of the Gazprom Board of Directors Alexei Miller.(RIA Novosti / Sergey Guneev)

Chairman of the Gazprom Board of Directors Alexei Miller.(RIA Novosti / Sergey Guneev)

A decree to begin the practical implementation of Gazprom’s project to supply natural gas to China has been signed by the Russian company’s CEO, Aleksey Miller. It says actual gas supplies will start from 2019.

“Starting from today, all the departments and subsidiaries of the company have begun to realize the project,” says a Gazprom press release Friday.

Gas production at Chayanda deposit in Russia’s Republic of Yakutia, which will be the source of the gas for the projecе, is scheduled to begin in late 2018 year, Gazprom said.

According to the company, by that time the section of the Power of Siberia pipeline connecting Chayanda with the town of Blagoveshchensk on the Chinese border will be completed.

Gazprom also expects the start of test production of gas at Chayanda in 2014, it will be supplied to the Eastern Siberia-Pacific Ocean pipeline from 2017.

The construction of the first line of the Power of Siberia pipeline leading to China will begin next year as well, the statement added.

Addressing the International Economic Forum on Friday Vladimir Putin said the gas fields which will be used in the Chinese project are underestimated and hold a lot more than the stated 3 trillion cubic meters of natural gas.

“This deal is for 30 years, while I think there’s enough supply for 50 years,” the Russian President said at the International Economic Forum in St Petersburg.

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

After the signing ceremony Miller said the Chinese contract price will remain a "commercial secret", butmarket analysts have been speculating it could $350 per 1,000 cubic meters. However, the head of the company’s export arm, Aleksandr Medvedev said it was more.

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 construction of 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 (22)


Vlada 24.05.2014 00:29

This long term gas deal between China and Russia will make many other fields of collaboration to multiply. For example, Russian military hardware companies are predicted to receive higher orders up to 1000% of which 90% will be for China, and only some 10% for Russia.

Let it not be forgotten that it were India and China that banned Russian Govt of closing the MIG jet fighters factory (by covering all its debts), but not because they were interested that much in MIG crafts, as they really wanted to keep the Sukhoi designers in a competitive surrounding.


George 23.05.2014 21:48

Codename PanchoVilla 23.05.2014 21:32

Russia/China pipelines may be strategic positioning for future delivery from Afghanistan and Iraq.


Afghans won't allow Russians into their country.


Codename PanchoVilla 23.05.2014 21:32

China has developed agreements in Afghanistan for gas, oil and in Iraq. The US bled and spent billions and got nothing. Russia/China pipelines may be strategic positioning for future delivery from Afghanistan and Iraq.

View all comments (22)
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