Russia joined Turkmenistan in delivery of pipeline gas to China

Russia joined Turkmenistan in delivery of pipeline gas to China

“Gazprom” came to the Chinese market of pipeline gas – President of Russia Vladimir Putin and Chairman of the People’s Republic of China Xi Jinping in a satellite bridge mode gave a start for delivery of the Russian gas to the People’s Republic of China by the pipeline «Power of Siberia».

«I allow (opening the tap valve. – the edit.note.) », – the Russian leader said during a start ceremony. “Let’s get started”, – Xi Jinping confirmed.

The gas pipeline is intended for transportation of raw materials from the Irkutsk and Yakut centres of gas production of Russian consumers in the Far East and China. Gas pipeline building took more than five years, its cost is estimated in 1, 1 trillion roubles.

“Gazprom” and Chinese CNPC signed a contract on delivery of the Russian gas to China by the «Power of Siberia» in May, 2014. The contract is concluded for 30 years and assumes an annual delivery of 38 billion cubic metre of gas.

In 2020 “Gazprom” expects to delivery to China five billions cubic metre of gas, in 2021 – to ten, in 2022 – to 15. The designed capacity of 38 billion cubic metres is planned to reach by 2025.

With arrival of the Russian gas in the Chinese power market there develops some kind of the Turkmen-Russian alliance of pipeline gas that is a disturbing signal for manufacturers of CNG. Counting on the enormous gas market of China in a number of the world countries there have been constructed facilities for liquefied gas and now the building of such capacities are also underway.

However annual delivery to the People’s Republic of China 40 billion cubic metre of Turkmen gas together with start of “Power of Siberia» because of price difference can essentially reduce market CNG in China. Besides, Turkmen deliveries have growth prospects.

Now Turkmen fuel arrives in the Heavenly Empire by three operating lines A, B and C of the gas pipeline Turkmenistan – China. With building of line D delivery of Turkmen gas to China will reach 65 billion a year.

Nury Amanov

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