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Jinping visit to Moscow on March 21. After Russia’s exports of gas to Europe have been cut to a fraction of those of previous years and are unlikely to restart after the Nord Stream pipelines were destroyed last September, Russia is seeking to reorientate is gas sales from West to East but needs to build a very large new pipeline running to China through Mongolia. Gazprom said on March 20 that gas exports to China via the existing Power of Siberia 1 pipeline reached a record 15bcm in 2022, but this still only a fraction of the approximately 150bcm Russia used to sell to China. Power of Siberia 1 has a nameplate capacity of 34bcm and the new Power of Siberia 2 could have as much as 50bcm or 60bcm but will take at least five years to build and possibility longer. "We have just discussed a good project, this is a new gas pipeline Sila Sibiri 2 running across Mongolia. Almost all terms of this deal were agreed. This means 50bcm of gas, stable and reliable shipments from Russia," Putin said.
Negotiations between Gazprom and CNPC on Russian gas supplies to China over the Power of Siberia 2 gas pipeline are at the final stage, Deputy Prime Minister Alexander Novak said on the air with the Rossiya-24 TV Channel on March 24. "Negotiations on preparation of a contract between Gazprom and China’s CNPC on gas deliveries over the Power of Siberia 2 route via Mongolia with the total capacity of 50bn cubic metres of gas are already at the final stage. This will make possible to us reach about 100bn cubic metres of gas supplies to China annually," Novak said. China is also showing interest in transportation over the Northern Sea Route, the Deputy Prime Minister said. "Contractual terms are now being finalized between Gazprom and CNPC. The feasibility study, the design of the gas pipeline route via the territory of Mongolia is underway already. We hope our companies will come to terms and achieve contract signing by the year-end," the official said.
At the end of January 2023, Russia came out on top in terms of natural gas supplies to China, overtaking Turkmenistan and Qatar. Interfax writes about this with reference to Chinese customs data. It is clarified that we are talking about gas supplies both through the gas pipeline and in liquefied form. In total, Russia supplied over 2.7bn cubic metres to China. m of gas, of which 2bn were supplied through the Power of Siberia, LNG accounted for about 0.77bn. For comparison, Qatar and Turkmenistan supplied China with a total of 2.2bn, and Australia - 1.9bn. In just a year, China increased gas imports by 1% to 11.3bn cubic metres. m. At the same time, the volume of LNG imports increased significantly - by 7% to 0.5bn cubic metres. m of gas, this happened for the first time after 13 months of decline.
In 2022, Russia delivered a record 15.5 billion cubic metres to China via the Power of Siberia gas pipeline. m of gas, exports increased by 49% compared to 2021, Deputy Prime Minister Alexander Novak said. Deliveries through the Power of Siberia began in 2019, within five years the volume of exports should grow to 38 billion cubic metres. m per year. After the Far East route reaches full capacity, volumes will increase to 48 billion cubic metres. m per year. And taking into account the supply of 50 billion cubic metres. m of gas to China through Mongolia, the volume of Russian gas exports will amount to almost 100 billion cubic metres. m.
Turkey as a gas hub will give the country an opportunity to export around 40bn cubic metres (bcm) of gas annually, Turkish Minister of
161 RUSSIA Country Report Russia April 2023 www.intellinews.com