Russia, China to Talk Western Route Gas Pipeline in May

Russia and China may discuss the western route of the Power of Siberia project during the visit of the Chinese Vice Premier Zhang Gaoli to Russia in May, TASS reported Monday.

Russian Deputy of Economic Development Minister Stanislav Voskresensky said that Gaoli’s visit would focus on energy dialogues and the proposed pipeline project would be the highlight, the news agency reported.

There have been reports in the media that the project may be shelved indefinitely due to slowing energy demand in China.

The western route 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.

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.