Gazprom and PetroChina to Finalize Russian Gas Supply to China
Gazprom, a leading Russian energy company, is set to hold negotiations with PetroChina Company Limited to finalize the details of natural gas supply to China. The two companies have already agreed on the technological specifications of the Altai Gas Pipeline, a 2,800-kilometer long pipeline that will export natural gas from Russia's Western Siberia to Northwestern China. The negotiations, which started in mid-March, aim to finalize the financing for the Altai project and the commercial terms of the Russian gas supply.
Key Takeaways:
- Gazprom plans to supply 30 billion cubic meters of natural gas to China per year for up to 30 years.
- The natural gas export contract is expected to be signed with China National Petroleum Corporation (CNPC) in July 2011.
- CNPC has raised its forecast for natural gas demands in China by 50% to 300 billion cubic meters by 2020.
- Using natural gas is considered the most realistic approach to achieve the goal of China's energy-saving and emission-reduction program.
- The first supply of natural gas to China is expected from late 2015.
- PetroChina and Gazprom have agreed on the technological specifications of the Altai Gas Pipeline.
Statistics:
- 30 billion cubic meters: the annual natural gas supply volume to China.
- 2,800 kilometers: the length of the Altai Gas Pipeline.
- 300 billion cubic meters: the forecasted natural gas demands in China by 2020, a 50% increase from previous estimates.
- 50%: the increase in natural gas demands in China forecasted by CNPC.
- 2020: the target year for China's natural gas demands.
- 2015: the expected year for the first supply of natural gas to China.
Sources:
- SinoCast Daily Business Beat
- Comtex SmarTrend
- Comtex News Network, Inc.