Rosneft Sees Potential for Boosting Gas Supplies to China

Rosneft has a serious potential for boosting Russian natural gas deliveries to China, company’s CEO Igor Sechin, said in an interview with Rossiya-24 TV channel on Monday, according to news agency TASS.

“There is a great potential for an increase in gas supplies,” Sechin said.

Russia has been working on expanding its gas export market, especially in Asia, amid European sanctions due to conflict in Ukraine. Russia on Sunday signed a memorandum with China pertaining to supply of natural gas through the western route.

Gazprom and CNPC signed a framework agreement on gas supplies and a memorandum of understanding in Beijing. The agreement provides for the export of 30 billion cubic meters of Russian gas to China annually for a 30-year period,

In May this year, Gazprom and CNPC signed 'China and Russia Purchase and Sales Contract on East Route Gas Project'. As per the deal, Russia will supply 38 billion cubic meters of natural gas annually from 2018 via east route pipeline for a period of 30 years. Gas will be supplied from eastern Siberia and Sakha Republic Kovykta gas field.

According to TASS, Rosneft Vice President Vlada Rusakova said the company is ready to supply around 16 billion cubic meters of gas annually via the Power of Siberia pipeline by 2020.