Russia and China to complete negotiations on new gas route by November — RT Business
Reuters / Stringer
Russia and China have begun talks on building an additional natural gas pipeline to China via a western route, Russian Deputy Energy Minister Anatoly Yanovsky said. The new pipeline will turn China into Russia’s key gas customer ahead of Germany.
The negotiations started on Sunday, and will continue throughout October, with results expected by November, Yanovsky told reporters Monday.
The western route will connect fields in Western Siberia with Northwest China through the Altai Republic and deliver 30 billion cubic meters (bcm) of gas per year. Gazprom and CNPC inked a framework agreement for the Altai project in October 2009 after beginning negotiations in 2004. It will be an addition to the eastern pipeline called the Power of Siberia that will deliver 38 bcm.
On Monday, Gazprom and CNPC signed the final document outlining the details of design and construction of the Power of Siberia. China will help finance the project and construction on the Chinese part will begin in the first half of 2015.
On September 1, Russian President Vladimir Putin and Chinese Vice Premier Zhang Gaoli broke ground on the Russian side. The two parties signed the $400 billion gas deal back in May in Shanghai.
READ MORE: Russia and China seal historic $400bn gas deal
When the western Altai route is completed, China will become Russia’s biggest gas customer. Russia will be supplying China with 68 bcm of gas annually; well in excess of the 40 bcm it supplies Germany today.
READ MORE: China to become Russia's biggest gas consumer if western route developed
Chinese Prime Minister Li Keqiang is in Moscow on a three-day official visit ahead of the European and Asian summit in Milan, which kicks off Thursday.
Russian Prime Minister Dmitry Medvedev met with his counterpart and sign 40 intergovernmental deals, including some involving energy.