A gas pipeline from Russia runs to the east of China

A gas pipeline from Russia runs to the east of China

Construction of the middle part of the eastern route of the China-Russia natural gas pipeline which is expected to be completed in October, next year, started, as the China Daily informs with reference to CNPC, the largest Chinese Oil and Gas Company.

The middle part of the pipeline stretches from northeast province of Jilin to Hebei in the east of the country. The China-Russia natural gas pipeline is expected to supply the Celestial Empire with 38 billion cubic metres of natural gas annually and by that it implies the start of delivery of Russian natural gas to the PRC by the end of the year –December 20.

With the project going into operation, Sinolink Securities’ Resource and Environment Research Centre said it expects Russia’s share in China’s gas market will increase. And in April CNPC signed an agreement with Novatek, Russia’s top independent gas producer to buy a 10 per cent stake in its new liquefied natural gas project, Arctic LNG 2 to increase in the delivery of gas to the country.

On July 1, the Russian giant «Gazprom» concluded a contract for purchase of natural gas from State Concern «Turkmengaz» for five years term. Many experts consider that it, first of all, will improve a bargaining position of «Gazprom» with its Chinese partners on the price of Russian gas.

According to others, «Gazprom» expects to get an access to the third phase of development of Galkynysh gas field of Turkmenistan.

In accordance with the report of the International Energy Agency (IEA) «Gas 2019», by 2024 Turkmenistan will remain leader in pipeline gas exports to China with deliveries of more than 45 billion cubic meters per year whereas Russia will deliver 35 billion cubic meters per year during this period.