Gazprom to Start Work on China Gas Pipeline in August

Gazprom will begin construction in August on the gas pipeline that will supply gas to China, the company said in a statement last week.

“We have a particular action plan. All the responsibilities have been distributed and strict deadlines have been set. Our objective is to weld the Power of Siberia (pipeline) first joint already this August,” Gazprom CEO Alexey Miller said.

The Yakutia–Khabarovsk–Vladivostok pipeline (also known as Power of Siberia pipeline) is a planned natural gas pipeline in Eastern Siberia to transport Yakutia's gas to Russia’s Far East and China.

On May 21, 2014 Gazprom and China National Petroleum Corporation (CNPC) signed the contract for the Russian pipeline gas supply to China. The 30-year contract stipulates gas supplies to the tune of 38 billion cubic meters of gas per year.

Gas will be supplied from eastern Siberia and Sakha Republic Kovykta gas field. Gazprom would be responsible for field development, gas processing plants and pipelines in Russia. CNPC will be responsible for construction of facilities within China.