Russia, China Western Route Gas Supply Deal Expected to be Signed in November

Agreement to supply Russian gas to China via the western route is likely to be inked before the end of the year,  Russian Energy Minister Alexander Novak said.

"We do not have hard deadlines, the talks between Gazprom and CNPC are underway, and as soon as the agreement is reached regarding the price, the terms of the construction of the gas pipeline, and the gas supply, we will be able to say something more specific. Under favorable circumstances, we expect that this could be done until the end of the year, if the companies reach an agreement," RIA Novosti quoted Novak as saying.

The minister had earlier stated that the contract for the supply of gas to China will be signed within the framework of the APEC summit, which will be held in Beijing in November.

The China-Russia West Route natural gas pipeline project connects gas deposits in Western Siberia and the northwestern part of China via Russia's Altai region.

In May this year, Gazprom and CNPC signed 'China and Russia Purchase and Sales Contract on East Route Gas Project'. As per the deal, Russia will supply 38 billion cubic meters of natural gas annually from 2018 via east route pipeline for a period of 30 years. Gas will be supplied from eastern Siberia and Sakha Republic Kovykta gas field.