Gazprom, CNPC discuss extra 6 Bcm/y gas supplies

Russian gas giant Gazprom is negotiating an additional 6 billion cubic meters per year (Bcm/y) of gas supply to China, Kallanish Energy reports.

The company is in talks with its partners to increase gas deliveries via the Power of Siberia, CEO Alexey Miller said in an interview published on Gazprom’s website last Friday.

If an agreement is reached, the pipeline would supply China’s CNPC with 44 Bcm/y. The project is currently ramping up deliveries and should reach its full contracted capacity in a “few years.”

“The supplies via Power of Siberia will grow faster than both the imports of LNG (liquefied natural gas) and the gas supplies from Central Asia to China,” Miller said.

CNPC and Gazprom are also discussing ways to arrange gas supplies from Russia’s Far East, the construction of Power of Siberia 2, and the western route.

“Considering all of this, we can say that in the foreseeable future the volume of pipeline gas exported to China will exceed 130 billion cubic meters, which is comparable with our supply volumes to the traditional markets,” he said.

Miller expects Chinese demand gas to grow at a “very high pace” and double in the next 15 years, following a 10% growth last year to over 300 Bcm.

This post appeared first on Kallanish Energy News.