Russia’s Western Route Could Ship 100 bcm to China, Says Miller

Russia could export up to 100 billion cubic meters of gas through the “Western Route” and the gas could be paid in yuans and rubles, Gazprom’s Alexey Miller told Rossiya24 on Tuesday, as published on the company’s website on Wednesday. 

“The parties outlined the schedule and expressed their willingness to speed up the project preparation activities” Miller said, adding that the Heads of Agreement for gas via the western route signed by China and Russia on May 8 laid a stable ground for future negotiations. 

In that occasions, the parties outlined provisions of the future contract for the so-called Altai gas pipeline, envisioning 30 billion cubic meters of gas to be supplied within 30 years.

“We regard it as the first phase, the first string, as presently it is being discussed that in the near future the volume of gas supply via the western route might be boosted to 60 and to 100 billion cubic meters of gas a year” Miller commented.

In other news, Gazprom said that the pipeline via the eastern route created better conditions for the Altai pipeline. The so-called Power of Siberia is reportedly running as of schedule.  

‘“The inked contract on the eastern route has created a solid foundation. Our talks on the western route are advancing at a good pace” Miller said in another note released after his meeting with Zhang Gaoli, First Vice Premier of the State Council of the People’s Republic of China, and Wang Yilin, Chairman of the Board of Directors of China National Petroleum Corporation (CNPC). 

According to the note, China started construction last week for the $400 billion (R4.9 trillion) pipeline. First deliveries are schedule for 2019.

A few hours later, on Wednesday, Russian Energy Minister Alexander Novak said that Ukraine agreed to pump enough gas into its UGS facilities to maintain the necessary pressure for Russian gas to reach Europe, Reuters reports.