Russia Not to Alter Supply Terms for the Power of Siberia Gas Pipeline

Russia is not expected to alter supply terms for the Power of Siberia gas pipeline due to decline in Chinese demand, Sputnik reported Saturday quoting Russian Economic Development Minister Alexei Ulyukayev.

However, Ulyukayev said that terms for the Altai pipeline may be altered.

"There are various projects. There are projects which are being realized as contracted commercial projects — this is the Power of Siberia eastern pipeline. I think that there cannot be any changes here… Regarding the western route, Altai, it may be possible because not so much has been contracted there, flexibility is possible," Ulyukayev told reporters.

In a report published Friday, Reuters, citing sources close to Gazprom, said Russia is likely to scale back volumes of gas it plans to ship to China later this decade due to the dive in global energy prices and uncertainty hanging over the Chinese economy.

On May 21, 2014 Gazprom and CNPC signed the Sales and Purchase Agreement for the Russian gas supply via the eastern route (Power of Siberia gas pipeline). The 30-year contract provides for gas supplies to China in the amount of 38 billion cubic meters of gas per year.

On May 8, 2015 Gazprom and CNPC inked the Heads of Agreement for pipeline gas supply from Russia to China via the western route. Initially, 30 billion cubic meters of gas a year are due to be delivered to China from Western Siberian fields.