Gazprom's Power of Siberia natural gas pipeline from Russia to China is 93 percent complete, the Russian gas giant said in an update on its major projects.
A total of 2,010 kilometers (1,249 miles) of pipes are laid for the Power of Siberia gas pipeline between Yakutia and the Russian-Chinese border, or on 93 percent of the route's length, Gazprom said in a statement.
The natural gas pipeline is expected to start sending gas to China at the end of 2019 and its completion is among Gazprom's top priorities.
The two-string submerged crossing of the Power of Siberia pipeline under the Amur River is 78 percent complete, and the Atamanskaya compressor station adjacent to the border is also under construction, the Russian company says.
Gazprom has a 30-year contract with CNPC for the supply of an annual 1.3 trillion cu ft of natural gas via the infrastructure.
This year, Gazprom plans to invest nearly US$3.2 billion (218 billion Russian rubles) in the pipeline project, up from the US$2.3 billion (158.8 billion rubles) investment last year, according to Russia's TASS news agency.
Gazprom and CNPC have also discussed another pipeline from Russia to China via the western route-the so-called Power of Siberia 2 pipeline-that would source gas from Western Siberian gas fields, but little progress has been made regarding the specifics of this project.
Gazprom is dominating gas supplies to many European markets while it vies to meet the surging Chinese natural gas demand as the country is in the middle of a massive switch from coal-fired to gas-fired heating in millions of homes.
Although Chinese companies are looking to boost domestic natural gas production, local production won't come even close to meeting surging demand, and China is expected to increasingly rely on gas imports.
According to the Gas 2018 report by the International Energy Agency (IEA), China will become the world's largest natural gas importer by 2019. The share of imports in China's natural gas supply is seen rising from 39 percent to 45 percent by 2023, the Paris-based agency forecasts.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
Comments
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