It is reported that Power of Siberia gas pipe will begin to be built in August to supply gas to China.
Gas being supplied to China will be exploited at Chayandinskoye gas field in the eastern Siberia. Currently, equipment installation is being prepared busily in gas fields. Protocol of design documents is close to end. Survey is being carried out. It is estimated that the first gas will be sent to China in 2018.
In May 2014, Gazprom signed gas contract with CNPC for 30 years. According the contract, Russia will supply 38 billion cubic meters gas to China. Total value of the contract is 400 billion USD. The investment for infrastructures of Power of Siberia gas pipe is 55 billion USD. Half of funds are received from CNPC in the form of advance payment.
Chayandinskoye gas field is unique. Besides methane, ethane, propane and helium also exist in gas field. For that, gas processing complex will be also created in the region during exploiting gas and building gas pipe. It is predict that half of increasing GDP in local will originate from Power of Siberia gas pipe and its related programs.
Experts point that Power of Siberia gas pipe is profitable for both Russia and China. Every year, supplementary requirements for gas are about 20 billion cubic meters in China. As is known to all, coal accounts for more than 70% of energy structure in China. For serious ecological problems, Chinese leaders decide to increase gas consumption by 18%. At present, China has 4 major gas supply channels. In south, China acquires about 10 billion cubic meters pipe gas from Burma every year. In west, Turkmenistan exports 26 billion cubic meters gas to China and Russia supplies 68 billion cubic meters gas to China. According to plan, in northeast, Russia will supply gas to China through Power of Siberia gas pipe and 30 billion cubic meters gas will be transmitted to China through Altay gas pipe annually.