Gazprom Moves Forward With Pipeline to China

Gazprom’s Alexey Miller met Li Hui, Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to the Russian Federation, to discuss the Russian gas pipeline to China. 

‘The parties addressed the progress with and the prospects for strategic cooperation, placing a special emphasis on the Russian pipeline gas supply to China,’ reads a note released on Monday evening. 

In May, Gazprom signed a 30-year contract with China National Petroleum Corporation via the eastern route. The project, also known as the Power of Siberia gas trunkline, should bring to China 38 billion cubic meters of gas per year.  

The intergovernmental memorandum has been negotiated for a decade.

TMK TO BENEFIT FROM POWER OF SIBERIA

The project is supposed to have a positive impact on other Russian companies. For instance, TMK said it expects an increase in revenues for the second half of 2014. 

‘The company observes an increase of the pipe market in Russia mainly due to higher consumption of LD pipe as a result of the commencement of Gazprom’s Power of Siberia project,’ TMK, Russia’s largest maker of steel pipes for the oil and gas industry, reported on Tuesday.