China-Russia Second Gas Deal Could be Delayed Indefinitely

Implementation of China-Russia second gas deal could be delayed indefinitely, Russian officials told Vedomosti Tuesday.

With Chinese economy slowing, Beijing is revising its energy policy, the officials said.

In May, Gazprom and CNPC signed the heads of agreement for pipeline gas supply from Russia to China via the western route. The western route envisages gas supply to China from Western Siberia's fields. On November 10, 2014 Gazprom and CNPC signed the framework agreement related to the pipeline.

Gazprom representatives declined to comment on the story, Vedomosti said.

In addition to western route, Russian and China have also signed a deal for supply of Russian gas via eastern route (Power of Siberia). Work on the eastern route pipeline has begun.

The Power of Siberia is a gas trunkline intended for natural gas delivery from the Irkutsk and Yakutia gas production centers to the Russian Far East and China (eastern route).

On May 21, 2014 Gazprom and CNPC signed the purchase and sale agreement for gas supply via the eastern route. The 30-year contract provides for Russian gas supplies to China in the amount of 38 billion cubic meters per year.