Gazprom speeds up the Power of Siberia pipeline construction (Russia)

24 Aug 2017

The Russian utility Gazprom expects to construct the Power of Siberia gas pipeline on time. The company also plans to build 1,300 km of the line by the end of 2017, which is approximately 200 km more than it had planned to build at the end of June 2017. As of August 2017, about 979 km of the pipeline have been built, or 45% of the overall length of the first section, running from the Chayandinskoye field to Blagoveshchensk. Gas supplies to China are scheduled to start in December 2019.

The Power of Siberia pipeline is meant to connect the Yakutia and Irkutsk production centres to supply the Russian Far-East and Chinese regions. The gas will be fed into the pipeline from the Chayandinskoye (Yakutia, Russia) and Kovyktinskoye (Irkutsk Oblast, Russia) fields down to China. The project is divided in three stages: Gazprom started the construction of the first section running some 2,200 km from the Chayandinskoye field to Blagoveshchensk (Amur Oblast, Russia) in September 2014. The second phase of the project includes the construction of a section stretching for about 800 kilometers from the Kovyktinskoye field to the Chayandinskoye field. The third stage will increase the gas transmission capacities between the Chayandinskoye field and Blagoveshchensk.

In 2014, Gazprom and CNPC reached a US$400bn deal for the supply of up to 38 bcm/year for 30 years (from Sakhalin and Western Siberia). The gas supplies will be oil-pegged and the deal also contains a take-or-pay clause.

Gazprom speeds up the of the Power of Siberia pipeline construction
Source: Gazprom

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