Power of Siberia

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

The pipeline crosses three regions of Russia, including Irkutsk Region, Republic of Sakha (Yakutia) and Amur Region. After the construction completion, the total length will comprise about 3 000 km, with the designed export capacity of 38 bcma.

Power of Siberia scheme
Enlarge

Currently, the first section of Power of Siberia gas trunkline is launched; it runs around 2,200 km from the Chayandinskoye field – the basis for the Yakutia gas production center – to Blagoveshchensk (Russian-Chinese border). It supplies gas to domestic consumers in Russia’s Far East and exports to China. In late 2022, Power of Siberia will start to receive gas from another field – Kovyktinskoye, which serves as the basis for the Irkutsk gas production center.

The Chayandinskoye oil, gas and condensate field is  unique in terms of B1+B2 reserves, which amount to some 1.2 trillion cubic meters of gas. Its annual designed output is 25 bcm. Chayandinskoye produces multi-component gas with substantial amounts of helium. To isolate valuable components from the gas, Gazprom is constructing the Amur Gas Processing Plant (GPP) near the town of Svobodny, Amur Region. It will be one of the largest gas processing facilities in the world with designed processing capacity of 42 bcm of natural gas per year.

The Kovyktinskoye gas and condensate field has the largest gas reserves in eastern Russia. It is unique in terms of C1+C2 reserves – containing 2.7 trillion cubic meters of gas. Its annual designed output is 25 bcm of 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 of up to 68 bcm gas per year.

In 2010, the Expanded Basic Terms for gas supply from Russia to China were signed.

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-year 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 is to 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 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 September 4, 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. In July 2018, pulling of pipes through the first tunnel was completed.

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.

In December 2017, the special technical agreements that fix the regime of parties’ interaction within commissioning and the set-up of gas supplies in accordance with Sales and Purchase agreements finalized and agreed.

On December 2, 2019, Power of Siberia was brought into operation launching the first-ever pipeline supplies of Russian gas to China.