Russia, China Continue Talks on Western Route Gas Pipeline
The price of natural gas that would flow through the proposed Russia-China western route gas pipeline is the still the most contentious issue, Russian Deputy Energy Minister Anatoly Yanovsky said Monday.
The talks regarding the gas pipeline project is ongoing and would continue till Tuesday, Sputnik reported. "Together we support the ongoing negotiations between the companies and we hope they will conclude on the ground of mutually beneficial positions," Novak said after the session of the China-Russia Energy Cooperation Committee. Talks on gas pricing with the CNPC have been complicated by the corporation's insistence on the possibility of switching to LNG, the Russian news agency added.
The western route, also known as Power of Siberia-2, envisages gas supply to China from Western Siberia’s fields to the tune of 30 billion cubic meters a 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. On September 3, 2015 the two parties signed a memorandum of understanding on natural gas supplies from Russia to China through the pipeline from the Far East.
Progress on eastern route
Work on the eastern route of the Russia-China gas pipeline is continuing with China expected to build up to 50 miles of the gas pipeline on its territory in 2016. According to Sputnik, Gazprom and CNPC will start building a cross-border section of a pipeline for the Power of Siberia gas project in June
On May 21, 2014, a gas purchase and sales contract via the eastern route pipeline was signed between CNPC and Gazprom. Under the 30-year contract, Gazprom will start transmitting gas to China via the Eastern Route from 2018, with gas delivery gradually increasing to 38 billion cubic meters per annum.
The imported gas will mainly supply China's Northeast, Beijing-Tianjin-Hebei area, and the Yangtze River Delta region.
Earlier this month, China’s Ministry of Environmental Protection approved the Chinese section of the Russia-China eastern route natural gas pipeline.