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China Commences Power of Siberia Construction Project

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Published on : Jun 02, 2015

China has commenced work on its pipeline construction project to receive Russian gas. The project is aimed to receive gas from the Power of Siberia pipeline, as commented by state gas company in Russia Gazprom recently.

The first butt welding of the project is slated for June completion, as commented by Gazprom CEO after the meeting with Vice Premier of the state council of China.

Both the parties gave strong points in favor of the implementation of the Russian gas delivery to China to be taken along the eastern route. The operations to be carried on the Russian territory is happening on schedule. 

The participating members of the meeting discussed at length the negotiations process to be carried on the natural gas supplies to China which will happen via the western route and schedules for further actions to be taken with respect to the contract.

As per CEO Gazprom, the contracted that has been signed has created a firm base on the eastern route. In the same manner, the negotiations for the western route are moving on at a good pace. Though, the contract signing of the key conditions for the western route will be an important step.

Russian and China signed a US$400 billion gas contract last year, to abide to which construction of the gas pipeline is required. The construction will require US$55 billion of investment from the Russian part, which also includes bringing on new gas fields on the stream.

Gazprom also commented that talks about the so called Western route, which would connect operating fields in China were going on at a good speed. 

Gazprom also added that Beijing has begun its part of construction of the Power of Siberia sometime last week. 

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