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Gazprom and CNPC sign technical deal on Far East route for supplying Russian gas to China

© Andrey Rudakov/BloombergA worker turns a valve wheel at a gas well on the Gazprom PJSC Chayandinskoye oil, gas and condensate field, a resource base for the Power of Siberia gas pipeline, in the Lensk district of the Sakha Republic, Russia, on Tuesday, Oct. 12, 2021.
A worker turns a valve wheel at a gas well on the Gazprom PJSC Chayandinskoye oil, gas and condensate field, a resource base for the Power of Siberia gas pipeline, in the Lensk district of the Sakha Republic, Russia, on Tuesday, Oct. 12, 2021.

Gazprom and CNPC have signed a technical agreement on the Far East route for supplying Russian gas to China, Gazprom said in a statement. The pair signed a long-term gas supply deal in February underpinning the construction of a pipeline from Russia’s Far East into China, underscoring Moscow’s strategic pivot to Asia.

“The document contains the main technical parameters for the cross-border section of the gas pipeline, including the underwater crossing of the Ussuri border river, as well as the physical and chemical parameters of the gas intended for supply,” said Gazprom.

Gazprom Deputy Chairman of the Executive Board Vitaly Markelov and CNPC Vice President Huang Yongzhang signed the document during an event via videoconference as part of the St. Petersburg International Economic Forum (SPIEF) 2022.

The new gas supply deal, signed in February, via the Far East route, underscored how escalating tensions with the West have pushed forward Russia’s ‘Pivot to the East’, a long-term strategy to diversify its resource exports to Asian countries, especially China, Energy Voice reported previously.

The agreement covers yearly supply of 10 billion cubic metres (cm) of natural gas over a 30-year term. The South-Kirinskoye field off the coast of Sakhalin Island is expected to be the source of supply.

Escalating Moscow-Western tensions speed up Russia’s energy pivot to China

This will be on top of the existing 30-year Power of Siberia-1 (POS-1) contract for yearly supply of 38 billion cm. The new deal will eventually bring total piped gas supply from Russia to China to 48 billion cm per year. Gazprom supplied about 11 billion cm in 2021 via Power of Siberia-1 (POS-1), with a plan to reach full contract volumes in 2025.

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