Work on Chinese Section of Russia-China Gas Pipeline to Start Later This Month

The official groundbreaking ceremony initiating construction of China’s segment of the Power of Siberia gas pipeline will take place in late June, according to Gazprom’s Chief Executive Officer Alexey Miller.

 "As far as the major projects are concerned, the Power of Siberia is definitely the most important for us now," Miller said responding to the question of the president concerning the implementation of Gazprom’s major projects, TASS reported Monday.

Construction was launched on September 1, 2014 in Yakutsk, Russia by president Putin and Chinese deputy premier minister Zhang Gaoli. "We are proceeding strictly on track; there are absolutely no problems and everything is on the run," Miller added.

"The Chinese party made a decision to start constructing its segment and the official groundbreaking ceremony for the construction of the gas pipeline segment on the territory of China will be held at the end of this month, in late June," TASS quoted the Gazprom CEO as saying.

The Power of Siberia is a gas trunkline intended for natural gas delivery from the Irkutsk and Yakutia gas production centers to the Russian Far East and China (eastern route).

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.

On November 10, 2014 Gazprom and CNPC signed the framework agreement on Russian natural gas supply to China via the western route.