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 three regions of Russia, including Irkutsk Region, Republic of Sakha (Yakutia) and Amur 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 3 000 km, with the design export capacity of 38 bcma

Power of Siberia scheme

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 main scope of construction and installation works on the 2200-kilometres-long section linking Chayanda field in Yakutia with Blagoveshchensk on Russo-Chinese border will be completed. Further it is planned to build a section linking Chayanda with the Kovykta field in Irkutsk Region (some 800 km pipeline). The third stage provides for expanding gas transmission capacities between the Chayandinskoye field and Blagoveshchensk.

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.

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.

On 4 September 2016 in Hangzhou (China), Gazprom and CNPC signed an EPC contract for the construction of the submerged crossing of the cross-border section of the Power of Siberia pipeline under the Amur River. The construction works were commenced in April 2017 from the Chinese side. In July 2018, pulling of pipes through the first tunnel was completed.

In April 2017, a temporary two-way checkpoint was built on the state border as part of the construction project for the submerged crossing under the Amur River. The checkpoint will provide unfettered access to the restricted area for operating personnel and construction equipment. The checkpoint opened on May 11, 2017.

On July 4, 2017 in Moscow Gazprom and CNPC signed a Supplementary Agreement to the Sales and Purchase Agreement for Russian gas supplies via the eastern route, defining the starting date for the deliveries. According to this document, gas supplies to China via the Power of Siberia gas trunkline will begin in December 2019.

On August 22, 2017, the Gazprom production meeting participants noted that the pipeline construction proceeds ahead of schedule. It was stressed that gas supplies to China via Power of Siberia would commence on December 20, 2019, strictly in accordance with the Supplementary Agreement to Gazprom and CNPC’s Sales and Purchase Agreement for Russian gas supplies via the eastern route.

On July 25, 2018, the Board of Directors of Gazprom PJSC approved the works on the implementation of the Power of Siberia project and the creation of gas processing infrastructure in the Russia’s Far East.