Russia’s new mega gas market in the East: Construction of pipeline Siberia – China has started

Russia’s energy giant Gazprom has today begun the construction of the gas pipeline “Sila Sibiri” (“Siberias Power”). It will from 2019 deliver Russian natural gas to China. President Vladimir Putin personally attended the ceremony in the village Chatyn in Yakutia. Also, China’s Vice Premier Zhang Gaoli was present during the ceremony.

The pipeline with an annual capacity of 38 billion cubic meters will be 3,000 kilometers long and cost the equivalent of around 16 billion euros. Its first part is a connection from the gas deposits in Tshajanda (Yakutia) to Lensk. From there the pipeline will be extended via Svobodny to Blagoveshchensk on the border with China. Both countries had in May this year signed a 30-year gas contract with a value of 400 billion U.S. dollars.

“Sila Sibiri” is now the world’s largest construction project in this industry, Putin said on Monday. According to him, the new pipeline will give Russia in the future the ability to transport gas from west to east or vice versa – depending on market conditions. In addition, the pipeline also will help to supply Eastern Siberia and the Russian Far East with gas.

China will start construction of its section of the pipeline in the coming year, said Chinese Vice Premier Zhang Gaoli during the ceremony in Yakutia.

Source: Stimme Russlands (in German)