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    Russia Could Send 130bn m3 of Piped Gas to China: Miller


Supplies could reach this level if Power of Siberia is enlarged and Power of Siberia 2 and another Far Eastern pipeline are built, Gazprom's CEO says.

by: Joseph Murphy

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Russia Could Send 130bn m3 of Piped Gas to China: Miller

Russia's Gazprom has discussed raising gas shipments to China via the Power of Siberia pipeline by 6bn m3/yr beyond the agreed amount in its contract with CNPC, its CEO Alexei Miller said on June 26, adding that eventually up to 130bn m3/yr of piped Russian gas could be sent to the Chinese market.

Gazprom and CNPC agreed a contract on gas supplies underpinning Power of Siberia's development in 2014, under which supplies are due to reach 38bn m3/yr. Deliveries of 44bn m3/yr are now "on the negotiating table," Miller said. Taking into account volumes via the planned 50bn m3/yr Power of Siberia 2 pipeline through Mongolia to China and additional supplies from the Far East, this could mean that Russian piped gas sales to China reach 130bn m3/yr, he said.

Moscow and Beijing began discussing Power of Siberia 2 last year, and Gazprom recently began design and survey work on the project. Unlike Power of Siberia, which is supplied by fields in Eastern Siberia, Power of Siberia 2 would ship gas from the Yamal Peninsula. The two sides are yet to reach a supply contract to support the pipeline, though, or disclose a timeframe for achieving this.

Gazprom has talked of building a Far Eastern link to the Chinese gas market for years, but again there is no contract in place for supplies. The contract underpinning the first Power of Siberia took a decade to negotiate, with any agreement on the pricing terms and conditions still not publicised.