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Gazprom intends to sign Western Route gas transmission accord with China

19th September 2014

Gazprom is to supply an additional 30 billion cubic metres of gas to China by its Western Route project (via the Altai Mountains border) in a 30-year agreement, according to chairman Alexei Miller

Gazprom is to supply an additional 30 billion cubic metres of gas to China by its Western Route project (via the Altai Mountains border) in a 30-year agreement, according to chairman Alexei Miller
The current China-Russia Western Route natural gas pipeline connects gas plays in Western Siberia with the north-western part of China via Russia's Altai region

“We are going to sign a contract to supply 30 billion cubic meters of gas for 30 years, and various volumes within new contracts for the western route have been announced at the talks. A possibility of supplying 60 to 100 billion cubic meters of gas to China is being considered,” said Miller in response to questions from Russian president Vladimir Putin.

The meeting yesterday between the Gazprom head and Putin in Moscow was primarily to reassure European customers that Gazprom intends to honour its gas supply agreements despite on-political unrest due to the Ukraine crisis.

The current China-Russia Western Route natural gas pipeline connects gas plays in Western Siberia with the north-western part of China via Russia's Altai region.

“Yes, certainly, as for the western route, it has its own advantages,” Miller said in response to a question from Putin regarding the feasibility of increased western route transmission. “Firstly, the existing gas transmission system in Western Siberia will be involved. Secondly, there is no need to create gas chemical or processing capacities for the Western Siberian gas, therefore, the investments required for the western route will surely be smaller than for the eastern route.

“On the other hand, the potential is huge. It is even greater than in Eastern Siberia and, by all means, we can rapidly boost the volumes of gas supply via the western route to respond to growing demand in the Chinese market.”

No date was given regarding a finalisation of the agreement.

On May 21, 2014 Gazprom and China National Petroleum Corporation (CNPC) signed the purchase and sale agreement – the biggest one in the national history – for the Russian pipeline gas supply to China. The 30-year contract stipulates gas supplies in the amount of 38 billion cubic meters of gas per year.

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