Progress Made on Chinese Section of Russia-China Gas Pipeline

Progress was made towards start of construction on the Chinese section of the eastern route of the Sino-Russia natural gas pipeline, China National Petroleum Corporation (CNPC) said Wednesday.

Xinhua Finance, citing company statement, said an agreement was signed recently between the project management department and pipeline arm of PetroChina on the building of the Heihe-Changling section of the pipeline.

The Chinese section of the eastern Sino-Russian natural gas pipeline would start from Heihe city in northeast China's Heilongjiang province and will run through Heilongjiang, Jilin, Inner Mongolia, Liaoning, Hebei, Tianjin, Shandong, Jiangsu and Shanghai to terminate at Shanghai municipality.

The pipeline would be approved and built in three sections. Included are the north section from Heihe to Changling as trunk pipeline and from Changling to Changchun as branch pipeline, the middle section from Changling to Yongqing and the south section from Yongqing to Shanghai.

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.