Putin to Gazprom: supply China via Mongolia

Putin Gazprom China Mongolia
Mongolia’s capital, Ulanbaatar

Russia’s President Vladimir Putin tasked Gazprom CEO Alexei Miller to look into supplying Yamal gas to China via pipeline through Mongolia.

“I would like to refer to the issue that we have repeatedly discussed with you and with Chinese partners, I mean the possibility of using the resources of the Irkutsk and Krasnoyarsk regions. Also, have a look at the reserves in Yamal for supplies to China via the western route through Mongolia,” Putin said at a meeting with Miller covered by Russian media.

“That is a challenging route, though the preliminary consideration of the issue has shown that it is quite realistic, and Chinese partners also tend to agree,” he stated.

Gas supplies from Russia to China via the Power of Siberia pipeline will start on December 1, Gazprom officials said. “That will be a landmark event as supplies from the world’s biggest gas exporter to the biggest importer will start,” he noted, adding that “one trillion cubic meters of gas will be delivered to the Chinese market in 30 years.”

The Power of Siberia pipeline is the largest gas transmission system in the Far East. The trunkline will transport gas from the Irkutsk and Yakutia gas production centers to consumers in Russia’s Far East and to China (eastern route). The gas pipeline transverses the Irkutsk and Amur Regions and the Republic of Sakha (Yakutia).

Gazprom’s website lists the following statistics for the line: 3,000 kilometers long; a diameter of 1,420 millimeters, working pressure of 9.8 MPa, export capacity of 38 billion cubic meters per year.

In May 2014, Gazprom and China National Petroleum Corporation (CNPC) signed the Sales and Purchase Agreement for gas to be supplied via the eastern route (Power of Siberia gas pipeline). The 30-year Agreement provides for Russian gas deliveries to China in the amount of 38 billion cubic meters per year. Gas supplies will start on December 1, 2019.

In September 2014, Gazprom commenced the construction of Power of Siberia’s first section running some 2,200 kilometers from the Chayandinskoye field (Yakutia) to Blagoveshchensk (Chinese border). The second phase of the project will include the construction of a section stretching for about 800 kilometers from the Kovyktinskoye field (Irkutsk Region) to the Chayandinskoye field. The third stage provides for expanding gas transmission capacities between the Chayandinskoye field and Blagoveshchensk.

The suggestion by Putin that Gazprom consider exporting Yamal gas to China via Mongolia would insure further throughput to the Power of Siberia system as well as provide further opportunity to supply Russian gas to China.

The Chinese market is currently the fastest-growing, the CEO pointed out. “As of today the Chinese partners and we are considering the possibility of supplying gas to China via other routes,” he noted.

Source: TASS / 9 September 2019