China will initially import 5 billion cubic meters of natural gas annually from Russia once the Power of Siberia pipeline is completed, state-owned China National Petroleum Corp. said Tuesday, September 2.
The update comes after Russian gas giant Gazprom on Monday launched construction of the pipeline within its borders.
CNPC said the Russian segment of the pipeline, which will span 2,680 km (1,665 miles), will connect to China at Heihe in northeastern Heilongjiang province.
Once the pipeline is completed, gas supplies to China will start at 5 billion cu m/year and gradually rise to 30 billion cu m/year over the first five years of deliveries. Volumes will reach 38 billion cu m annually from the sixth year onward, CNPC said.
The gas will primarily be sent to China's northern coastal areas, including Beijing, Tianjin, the Yangtze River Delta and other areas with existing pipeline infrastructure.
During the launch ceremony in the East Siberian Republic of Sakha (Yakutia), China's Vice Premier Zhang Gaoli said work on the section of the pipeline in China will start during the first half of next year.
Both CNPC and Gazprom inked a historic deal in May to send up to 38 billion cu m/year of Russian gas to China over a 30-year period starting after 2018.
CNPC said deliveries are still targeted for 2018, although Gazprom said Monday that direct gas supplies to China will start in 2019, adding that the launch of the East Siberian Chayanda field, a key source for the supplies, is scheduled to start by end-2018.
Source: Platts
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