Russia Formally Approves East Route Gas Supply Deal With China

Russia on Friday formally approved agreement with China on natural gas supplies along the East Route.

“The signing of the Agreement is a pre-condition for the entry into force of the East Route natural gas sales contract, signed 21 May 2014 between Gazprom and the China National Petroleum Corporation,” Russian government said in a statement.

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.

According to the deal, the two parties will support the successful implementation and provide comprehensive assistance to authorised organisations in designing, building, operating and maintaining the gas transport infrastructure needed to deliver gas from Russia to China along the East Route, specifically, the Power of Siberia Pipeline, including the trans-border section of the pipeline.

Gazprom would be responsible for field development, gas processing plants and pipelines in Russia. CNPC will be responsible for construction of facilities within China.