Russia and China agreed on Gas Supplies via the Far East Route

Russia | February 9, 2023, Thursday // 12:09|  views

Russia and China signed an intergovernmental agreement on gas supplies on the Far East route. The Russian Ministry of Energy has prepared a draft government decree to ratify the agreement.

This intergovernmental agreement provides for the construction of a cross-border section of the gas pipeline. It starts at the Gas Measuring Station (GIS) in Russia near Dalnerechensk, crosses the Ussuri River and ends at the Hulin launch station in China. "Gazprom" is responsible for the design, construction and operation of the section in Russia, and China National Petroleum Company - in China. It is emphasized that countries encourage the use of national currencies.

At the beginning of February 2022, Gazprom signed a long-term contract with the China National Oil Company for the export of 10 billion cubic meters of gas per year via the Far East route. After the completion of the project, the company's total supply will increase to 48 billion cubic meters.

Gazprom currently supplies gas to China through the Power of Siberia pipeline. By the end of 2022, exports through the pipeline will reach 15.5 billion cubic meters. As the project progresses, the volume of deliveries is planned to increase annually until the design annual capacity of 38 billion cubic meters per year is reached by 2025. The development of the "Chinese vector" is also connected with the route including the construction of the "Power of Siberia-2" gas pipeline through Mongolia with a capacity of 50 billion cubic meters per year. The project is under development.

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Tags: Russia, China, gas, Gazprom


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