Page 10 - AsianOil Week 41 2021

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Russia, China agree on route

for second gas pipeline

PIPELINES & RUSSIA and China have agreed on the route
TRANSPORT for a second pipeline to bring Siberian gas to the
Chinese market, Russian President Vladimir
Putin said on October 14, although a gas supply
price likely remains a sticking point.
Putin said the two sides had agreed “in prin-
ciple” on the route through Mongolia, indicating
that an early plan to build the pipeline through
Russia’s Altai region is now off the table. Analysts
at BCS Global Markets (BCS GM) said running
the pipeline through Mongolia would reduce
the overall transport distance between Western
Siberian fields and Beijing from 5,000 km to
4,600 km. It also means the pipeline will deliver
gas to the Chinese border some 2,000 km closer
to the core industrialised regions of China.
Altai had been Russia’s preferred option for
the route, as this would require less pipeline
construction in its territory. On the other hand,
China would have had to build thousands of
kilometres of pipeline through its sparsely pop-
ulated and restive Xinjiang province.
While an agreement on the pipeline’s route is
a clear sign of progress, BCS GM said this was rationale. In China and Russia’s case, price has
less important than a deal on the price for future traditionally been a sticking point in talks. Gaz-
gas supplies. prom and CNPC held discussions on a large-
“We think that the current gas shortage and scale supply deal for their first pipeline, Power
extremely high prices in both Europe and Asia of Siberia, for a decade before reaching a $400bn
will make it easier for Gazprom to get a fair price sales and purchase agreement (SPA) in 2014.
from the deal,” the brokerage said in a research Power of Siberia was brought on stream in
note. “And we think the odds of a final agreement December 2019 but it is expected to take several
being reached in the next 12 months have much years for the pipeline to flow gas at its full capac-
improved.” ity of 38bn cubic metres per year. The pipeline
Building a gas pipeline between two coun- through Mongolia will carry 50 bcm per year,
tries is rarely an easy undertaking, requiring from fields Gazprom is developing in the Arctic
both strong political will and a firm commercial Yamal Peninsula.v

OCEANIA

Beach picks Wood to handle

Trefoil gas field’s FEED

PROJECTS & AUSTRALIAN independent Beach Energy has Wood said on October 11 that it would pro-
COMPANIES awarded two front-end engineering and design vide FEED services for both platform topside
(FEED) contracts for its offshore Trefoil natu- modifications as well as the development’s sub-
ral gas field to international services provider sea and pipeline system.
Wood. The Yolla platform produces gas via two wells
Trefoil, which is located in the Bass Basin’s T/ and sends it ashore via a 147-km subsea pipeline,
RL2 licence, will be tied back to an existing plat- which connects to a 32-km pipeline to the Lang
form at the producing Yolla gas field, which lies Lang Gas Plant in Victoria.
38 km to Trefoil’s east. Trefoil is expected to extend the platform’s

P10 www. NEWSBASE .com Week 41 14•October•2021