Heading East: Russia and China sign memorandum on construction of the Power of Siberia—2

On Tuesday, September 2, it became known that Russia and China signed a memorandum on the construction of the Power of Siberia—2 gas pipeline. This was announced by the head of Gazprom Alexey Miller. According to him, construction of the Soyuz—Vostok transit gas pipeline through Mongolia will also begin. For more information about the agreements, as well as about existing and upcoming gas projects— see the Izvestia article.

Power of Siberia — 2: Russia and China sign memorandum

On Tuesday, September 2, China hosted a meeting of the leaders of Russia, China and Mongolia, on the basis of which a memorandum was signed on the construction of the Power of Siberia —2 gas pipeline, as well as the Soyuz Vostok transit gas pipeline. Alexey Miller told reporters about this.

"Based on a public statement made by the leaders of the three countries — Russia, China and Mongolia — a legally binding memorandum was signed today on the construction of the Power of Siberia—2 gas pipeline and the Soyuz Vostok transit gas pipeline through Mongolia. This project will allow for the supply of 50 billion cubic meters of gas per year from Russia in transit to Mongolia," he said.

The head of Gazprom added that in total it will be the largest and most capital-intensive gas industry project in the world, and that its implementation will take time.

As Alexander Frolov, Deputy Director General of the National Energy Institute and editor—in-chief of the InfoTEK portal, reminded Izvestia, a legally binding memorandum is not yet a contract.

— Gazprom and its Mongolian partners have only received guarantees from the Chinese company CNPC (China National Petroleum Corporation; CNPC — Ed.) in maintaining its interest in the Power of Siberia — 2 project. Accordingly, there were no new parameters that changed or at least complemented our understanding of the project," the expert notes.

At the meeting of the three leaders, agreements were also signed between Gazprom and CNPC on the Power of Siberia gas pipeline. According to Alexey Miller, we are talking, in particular, about increasing gas supplies to China from 38 to 44 billion cubic meters. m per year and to increase the volume of gas supplies under the Far Eastern Route project.

The dates of the project, the exact route and the start of gas supplies through the Power of Siberia — 2 are still unknown, but Alexey Miller in this context recalled how the work on the Power of Siberia went.

Commenting on the new project, Alexander Frolov explained in a conversation with Izvestia that the Power of Siberia —2 will reach the border with Mongolia, where it will be continued by Soyuz Vostok. When crossing the border of Mongolia and China, the gas will transfer to the part of the main gas pipeline system that the Chinese partners will build on their territory.

— As far as can be judged from the statements that followed today's signing, the issue of the price formula and specific consumers in China remains. Guaranteed demand should begin to form under 50 billion cubic meters so that CNPC can sign a contract,— concluded Alexander Frolov.

"The Power of Siberia": what is known, where it takes place

The Power of Siberia main gas pipeline transports gas from the Kovyktinskoye field in the Irkutsk Region (the largest in Eastern Russia in terms of gas reserves), as well as the Chayandinsky field in Yakutia. Its consumers are residents of the Far East, as well as China.

The length of the "Power of Siberia" is more than 3 thousand km, and the highway runs through the Irkutsk region, the Republic of Sakha (Yakutia) and the Amur region. The diameter of the pipes is 1.42 m.

The contract for the purchase and sale of Russian gas via the Eastern Route (Power of Siberia) between CNPC and Gazprom was signed in May 2014 for a period of 30 years. In September of the same year, Gazprom began construction of the first section of the route, from the Chayandinskoye field to Blagoveshchensk. Its length was about 2.2 thousand km. The second stage consisted of laying a gas pipeline from Kovyktinskoye to the Chayandinskoye field with a length of 804 km, and the third was to expand gas transmission capacities in the section from the Chayandinskoye field to Blagoveshchensk.

The pipeline was launched in December 2019, which marked the beginning of the first-ever pipeline deliveries of Russian gas to China.

The use of pipes made only in Russia became important in the construction of the Power of Siberia. The route also passes through extreme natural and climatic conditions - swampy, mountainous and seismically active territories, as well as through permafrost and rocky soils. The absolute minimum air temperatures there range from 41 degrees below zero to -62 degrees.