Page 10 - FSUOGMWeek 10 2020

FSUOGM
PIPELINES & TRANSPORT FSUOGM
Gazprom to halt Power of Siberia this month for repairs
Suppliers often agree with buyers to time maintenance for when there is a lull in demand.
RUSSIA
RUSSIA’S Gazprom and China’s CNPC plan to suspend gas flows via the Power of Siberia in the second half of March so that repairs can take place.
The pair are currently finalising the exact dates that the routine maintenance will take place, RIA Novosti reported on March 10, citing Gazprom. Gazprom and CNPC have agreed to carry out maintenance on Power of Siberia twice a year in spring and autumn.
Power of Siberia is capable of flowing up to 38bn cubic metres (bcm) per year of gas. The pipeline was launched in December and had pumped 840mn cubic metres of gas to China from fields in Eastern Siberia by the start of March. It is due to flow a total of 4.6 bcm of gas this year and ramp up to full capacity in 2025.
China has seen a significant slowdown in gas demand growth as a result of efforts to combat the spread of the coronavirus (COVID-19). This has led state gas importers to declare forces majeures on their supply contracts, in an attempt to delay shipments.
Kazakhstan’s gas grid operator Kaztrans- gas (KTG) confirmed on March 7 that it had received a force majeure notice from Chinese buyer PetroChina. It is contracted to supply 10 bcm of gas to China annually. Gazprom said on March 5 it had not received such a notice from CNPC. But suppliers typically agree with buyers to time maintenance on facilities for when there is a lull in gas demand.
Overall Chinese gas imports, including both piped supplies and LNG, totalled 24.2 bcm of gas in the first two months of this year, up 2.8% y/y. While this would represent a robust rate of growth for many gas markets, China is on a major drive to increase its gas use and phase out coal, in order to curb pollution levels. In January 2019, for example, imports were up 27% y/y, while the following month they were up 9%.
In addition to Russia and Kazakhstan, China also gets pipe gas from Turkmenistan and Uzbekistan. It also takes LNG from Australia, Qatar and various other suppliers. ™
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Week 10 11•March•2020