Gazprom, Russia’s largest natural gas producer, will begin supplying China with fuel on December 20, 2019 through the new Siberia gas pipeline, Gazprom Chief Executive Alexei Miller announced earlier this week after 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, where the two companies signed a China-Russia supplementary purchase and sale contract, the state-owned Chinese company said on its website.
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 the “Power of Siberia”, has a planned annual capacity of 38 billion cubic meters.
CNPC added 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 discussed expanding crude oil trade improving revenues from the Tianjin refinery project and expanding cooperation in exploration and development in Russia with Rosneft president Igor Sechin.
China’s natural gas consumption is expected to reach 300 billion cubic meters annually in the next few years, Miller said.