Gazprom begins supplying China with gas

Russian gas company Gazprom will start supplying China with gas before the agreed date, starting on December 1, 2019, Gazprom chief executive Alexei Miller said after the end of talks in Beijing with its managing director Chinese state oil company CNPC, Wang Yilin.

The two sides talked about a wide range of issues concerning the cooperation between the two companies, while the main issue discussed was the preparation of the commencement of China’s gas supply through the Sila Sibiri gas pipeline (“The Force of Siberia), which is expected to be fully operational by 2025.

Particular attention was paid by the two sides to the plans to supply China with Russian gas through the Russian Far East and Western Route while pointing out that based on the results of 2018, China became the world’s largest importer of natural gas in the world. The volume of gas imports reached 125.7 billion cubic meters, which exceeds 31% (30.3 billion cubic meters) of imports in 2017.

“Indeed, the largest increase is attributable to LNG imports as China is unable at this juncture to fully meet the growing gas consumption through natural gas pipelines,” the joint venture said.

Miller and Yilin discussed co-operation in the field of electricity generation using natural gas, the use of natural gas as a fuel, issues of underground gas storage facilities.