Page 9 - FSUOGM Week 25 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom, CNPC sign technical deal on

Far East gas route to China

RUSSIA RUSSIA’S Gazprom and China National Russia and China after the existing Power of
Petroleum Corp. (CNPC) have signed a tech- Siberia pipeline. That pipeline has a peak capac-
The pair have been nical agreement on a Far East route for sup- ity of 38bn cubic metres per year and is due to
looking to finalise plans plying Russian natural gas to China, Gazprom be in service for around 30 years. Gazprom
for a Far East-to-China announced on its Telegram channel on June 16. supplied about 11 bcm in 2021 via the Power of
gas pipeline. Gazprom deputy chairman Vitaly Markelov Siberia, which is expected to reach full capacity
and CNPC vice-president Huang Yongzhang in 2025.
signed the deal via videoconference at the St The agreement for the second pipeline covers
Petersburg International Economic Forum supply of 10 bcm per year of gas over a 30-year
(SPIEF). period. The South-Kirinskoye field off the coast
“The document contains the main technical of Sakhalin Island is expected to be the source
parameters for the cross-border section of the of supply.
gas pipeline, including the underwater crossing Since that deal was signed, China has become
of the Ussuri border river, as well as the physical an increasingly important export market for
and chemical parameters of the gas intended for Russia, after the war in Ukraine led the Euro-
supply,” said Gazprom. pean Union to announce that it would phase
The technical agreement follows a long-term out Russian gas supplies over the coming years.
gas supply deal that the two companies signed Indeed, supplies to Europe are already suffering
in early February, which is intended to underpin from disruptions, and pivoting to China looks
development of a second gas pipeline between increasingly important to Moscow. ™

Week 25 22•June•2022 www. NEWSBASE .com P9