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Russia, China to sign new 30 year gas deal via 2nd route
September 18, 2014, 5:30 am

Putin with Gazprom CEO Alexei Miller on 17 September 2014 [PPIO]

Putin with Gazprom CEO Alexei Miller on 17 September 2014 [PPIO]

Russia plans to sign a 30-year gas supply contract with China via the western route, Russian energy giant Gazprom’s CEO Alexei Miller told President Vladimir Putin on Wednesday. The route to supply gas to China via western Siberia may be implemented faster than the eastern route, through which Moscow has agreed to ship the fuel to its Asian neighbor in May.

“Gazprom plans to sign a contract to supply China with 30 billion cubic meters of natural gas via western route over thirty years,” Miller said.

The China-Russia West Route natural gas pipeline project connects gas deposits in Western Siberia and the northwestern part of China via Russia’s Altai region, securing the world’s top energy user a major source of cleaner fuel.

The potential of this route is “enormous”, the Gazprom CEO told the Russian President.

“It is even greater than in Eastern Siberia and, without a doubt, we can increase the volume of gas supplies very quickly via the western route, depending on the growth in demand in the Chinese market,” said Miller.

Gazprom is to sign the 30-year contract with China National Petroleum Corporation (CNPC) in November. The deal will directly link Russia’s huge gas fields to Asia’s booming market for the first time.

Miller also said Gazprom might consider more than doubling the volume of supply.

“We plan to sign a contract for a volume of 30 billion cubic metres for 30 years, though the talks have also looked at other figures for new contracts concluded for the western route. We are looking at the possibilities for supplying 60 billion cubic metres or up to 100 billion cubic metres of gas to China,” Miller told Putin in Moscow.

China and Russia signed a $400-billion gas supply deal in May this year, opening up a new market for Moscow as it risks losing European customers over the Ukraine crisis.

The Russian part of the joint venture pipeline, officially dubbed “Power of Siberia”, will be built by Gazprom with a total investment of $55 billion.

Construction of the China- Russia East Route natural gas pipeline started this month in this eastern Siberian city of Yakutsk.

 

TBP and Agencies

7 Responses to Russia, China to sign new 30 year gas deal via 2nd route

  1. Royce Royal Reply

    September 20, 2014 at 10:59 pm

    Oh well, so much for isolating Russia. The deal will probably be transacted minus Uncle Sam’s dollar. Putin and Russia win again now that Crimea and the industrial south/east of Ukraine is under control. The west tries intimidation, but Russia is not Libya or Iraq. The world understands only the big gun and the big wallet. Russia has both.

  2. Liana Sammartino Reply

    September 21, 2014 at 4:38 pm

    I think it is an excellent news! I hope collaboration among BRICS countries may continue to the best of their mutual benefits; I also hope an “army” may be born only to counter attack in “possible” emergency situations. Just to balance NATO.

  3. nmb Reply

    September 21, 2014 at 10:25 pm

    “What we see now, is a cruel battle with time. On the one hand, Russia and China, together with the rest of the BRICS, are trying to get rid of the dollar and form their own currency system to gain complete independence, on the other, the neocon banking-corporate puppets in the US are in panic and seek desperately a pretext to come to war with Russia and put an end to this threat for their plans. This explains their agony to drag Russia into a warm conflict.”

  4. Risto Koivula Reply

    September 22, 2014 at 12:37 pm

    Thhe costs are the same magnitude as to divert Ob-river to the south in order to get water into the Central Asia and to protect the permafrost against warming in the gas fields Jamburg and Bovanenkovo. (I was assistant chief designer of the steel constuctions of Jamburg of the Yamburg settelement.

  5. General Knowledge Reply

    September 22, 2014 at 1:09 pm

    Russians hope and pray that BRICS will save them from the sanctions imposed by the West….GOOD LUCK with that.

    China will chew you up and spit you out and India is only looking to take over all Russian IT services. And lets not forget…both of them are H U G E trading partners and FRIENDS of the WEST.

    With HUGE crowds of RUSSIANS protesting this weekend against Russia’s actions and policies in the Ukraine…it is clear the weak midget (Putin) does not have the control of the people of Russia he believes he has.

    Keep up the fight Russian comrades, do not allow Putin the fool to dictate to you…internet freedom will soon be a think of the past for Russians.

    Fight the midget.

    • River Rage Reply

      September 22, 2014 at 9:15 pm

      Silly troll, suffering from wet dreams and dillusions disseminating overt nonesence for a few shekels. The days of outright lieing is over. Veracity can no longer be stomped out. The sanctions are biting back. No huge crowds protesting in Russia, just a few groups expressing the need for peace. Putin at 85% popularity. China needs Russia’s natural gas along with India for the next century and will be paying trillions. The greatest sea port in the world is being constructed in east Russia and the Silk highway is in full swing. Russia at Zero deficit vs US swamped by thirty trillion. Big transactions avoiding the pertrol- dollar. One hundred million functionally illiterate Americans out of work, fifty million living off gov handouts. Four wars going at once keeping Titanic afloat, all the while alienating humanity. The American mushroom being fed crap and kept in the dark for fear the truth might scorch the zombies. Washington practicing the “cornered rat diplomacy” bite, lie, steal, and call it democracy. Game over, no overtime.

  6. Lisa M Reply

    October 1, 2014 at 8:34 pm

    What we see are the super wealthy of this world being challenged by ‘no fear’ Putin, who openly refuses the New World Order which is having a problem falling into place because of both China and Russia. The BRICS negates the one currency future and pisses Obama off. This is all perfectly fine with me as America founding principals are not the same as those who rob from it now and weaken our nation. I do know we’re going to see some inflation here and it’s going to be tougher for the 99% of Americans.

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