IEA: gas supplies to China via the Western route will be cheaper, than on “Force of Siberia”

MOSCOW, November 10. Gas supplies via the Western route to China (the project “Power of Siberia-2”) will be cheaper deliveries through the pipeline “Power of Siberia”. This is stated in the report of the International energy Agency (IEA) world energy Outlook (World Energy Outlook 2015).

As noted by the IEA, the capital cost of the project “Power of Siberia” are estimated at more than $30 billion on the development of the resource base (Chayandinskoye and Kovyktinskoye fields) and in the same amount on the construction of the pipeline.

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“Much cheaper gas supplies – the so-called Western route, as it will use the existing resource base in Western Siberia and the existing transport infrastructure in most parts of the route,” notes the IEA.

However, from the Chinese point of view, the Western route has a major drawback – the entrance to the Chinese territory far from the main regions of demand, which requires further development of gas transmission capacities, emphasizes the Agency.

The IEA predicts a significant increase in the supply of Russian pipeline gas to China that will be almost 80 billion cubic meters by 2040. The share of exports to China in total volume of Russian gas exports (including LNG), according to the forecast, will reach by the year 2040, almost 30% .