Gazprom to start gas supplies to China via Siberia in Dec 2019

Russia’s largest natural gas producer Gazprom will start supplying fuel to China through Siberia on December 20, 2019, Gazprom Chief Executive Alexei Miller told reporters after a meeting with China National Petroleum Company ( CNPC).

CNPC Chairman Wang Yulin and Gazprom’s Miller met during Chinese President Xi Jinping’s visit to Moscow this week. They also signed a China- Russia supplementary purchase and sale contract, the Stateowned Chinese company said on its website on Wednesday.

The deal is the latest sign that Russia is tightening its ties with China, a major gas buyer. It comes at a time of turmoil for rival major exporter Qatar amid a dispute with its Gulf neighbors who have imposed political and economic sanctions on Doha.

The new pipeline, dubbed “Power of Siberia,” has a planned annual capacity of 38 billion cubic meters.

CNPC said that it agreed to speed up the construction of pipeline and market development, as well as natural gas processing plants and domestic underground gas storage facilities to make sure the project starts on time.

Wang also met with Rosneft president Igor Sechin and discussed expanding crude oil trade, improving revenues from the Tianjin refinery project and expanding cooperation in exploration and development in Russia.