Power of Siberia

The Power of Siberia gas transmission system will provide the Russian gas with access to China, a new market for Gazprom.

The pipeline will cross five regions of Russia, including Irkutsk Region, Republic of Sakha(Yakutia), Amur Region, the Jewish Autonomous Region and Khabarovsk Region. The system will convey gas from Irkutsk and Yakutia production centers to consumers in Far East and China. The total length will comprise about 4 000 km, with the design capacity of 61 bcma

Power of Siberia scheme

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The Power of Siberia gas transportation system will be able to directly bring Russian gas through the Eastern route to China. According to the contract, Chinese clients will receive 38 bcm gas per year.

The bulk of pipes used in the construction will be domestically manufactured. Some 11,700 experts will be engaged within Phase 1 of the Power of Siberia project and some 3,000 employees will ensure the pipeline’s operation.

By the end of 2018, the 2200-kilometres-long section linking Chayanda field in Yakutia with Blagoveshchensk on Russo-Chinese boarder will be completed. Further it is planned to build a section linking Chayanda with the Kovykta field in Irkutsk Region (some 800 km pipeline), and a section from Svobodny in Amur Region to Khabarovsk (1000 km). This will link the Power of Siberia to Sakhalin-Khabarovsk-Vladivostok gas transmission system.

The Chayandinskoye oil, gas and condensate field is the cornerstone for the Yakutia gas production center. It is a unique field in terms of reserves (C1+C2): some 1.45 trillion cubic meters of gas and some 93 million tons of liquid hydrocarbons (recoverable). Gazprom will construct the Amur Gas Processing Plant in the Amur Region to extract valuable components (helium and ethane, for instance) from natural gas.

The preparatory works on the gas field and construction of the Amur processing plant will start in 2015. It is planned to launch gas production from the Chayanda field in late 2018. This will allow to start direct gas supplies to China in 2019, in accordance with the agreement.

Major steps of the project:

In 2009, Gazprom and China National Petroleum Corporation (CNPC) signed the Framework agreement on the main terms of deliveries of Russian natural gas to China, foreseeing annual exports to Chinese market totaling to up to 68 bcm gas per annum.

In September 2013, Gazprom and CNPC signed the Agreement on basic terms of pipeline deliveries to China via the Eastern route.

On May 21, 2014, Gazprom and CNPC signed the Purchase and Sale Agreement to supply Russian gas to China. The 30-years’ agreement implies delivering 38 bcm of natural gas annually.

On September 1, 2014, Yakutsk hosted the celebrations dedicated to welding the first joint of the Power of Siberia gas transmission system, which will be the backbone of gas transmission system in Russian East.

On October 13, 2014, in Moscow the parties signed a Technical Agreement — a supplement to the Purchase and Sale Agreement for gas supplies through the Eastern Route. This document defines basic parameters of design, construction and operation of the Power of Siberia gas trunkline’s cross-border section. In addition, the document contains the main technical and technological features of conveying gas from seller to buyer.

On December 17, 2015, Gazprom and CNPC signed the Agreement to design and construct the cross-border section of the Power of Siberia gas pipeline, including the submerged crossing under the Amur River.

Related news:

Gazprom and CNPC sign Memorandum of Understanding on underground gas storage and gas-fired power generation – 25.06.2016

Gazprom and CNPC sign Agreement on Power of Siberia cross-border section and other documents for further cooperation – 17.12.2015

Gazprom and CNPC sign Technical Agreement on gas supplies via eastern route – 13.10.2014

Russia and China signed the biggest contract in the entire history of Gazprom – 21.05.2014