Russia, China Sign Memorandum on Gas Supplies via Western Route

Russia on Sunday signed a memorandum with China pertaining to supply of natural gas through the western route, reported RIA Novosti.  

Gazprom and CNPC signed a framework agreement on gas supplies and a memorandum of understanding.

The documents were signed in Beijing in presence of Russian President Vladimir Putin and Chinese leader Xi Jinping, RIA Novosti said.

According to the Gazprom CEO Alexei Miller, the documents signed by Russia and China on Sunday define the western route as a priority project for the gas cooperation between the two countries.

"First of all these documents stipulate that the "western route" is becoming a priority project for our gas cooperation," Miller said, adding that the documents provide for the export of 30 billion cubic meters of Russian gas to China annually for a 30-year period, reported RIA Novosti.

According to Miller with addition of western route, potential Russian gas supplies to China may exceed the current levels of export to Europe in the medium-term perspective.

The western route will connect fields in western Siberia with northwest China through the Altai Republic. Second and third sections may be added to the pipeline at a later date, bringing its capacity up to 100 billion cubic meters a year, RIA Novosti stated.

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.