Novak: gas supplies to China via the “Western route” will be discussed at the intergovernmental Commission on 15-16 November

MOSCOW, November 11. The issue of gas supplies to China via the “Western route” will be discussed at the intergovernmental Commission of Russia and China. About it told journalists the head of Ministry Alexander Novak.

“They (negotiations – approx. ed.) are constant at the firm level. You know, November 15-16 will be mezhpravkomissii, there is flying (Deputy Prime Minister Arkady) Dvorkovich, this theme will surely rise,” he said.

As previously reported, in September “Gazprom” started substantive price negotiations by the “Western route” to China, while the parties have not reached agreement. According to the head of “Gazprom export” Elena Burmistrova, while the parties have not reached a unified position on corrective component formula-based prices for gas along the Western route.

According to the Memorandum of understanding on cooperation in the field of natural gas, dated June 24, 2009, signed by OAO Gazprom and China national petroleum Corporation (China National Petroleum Corporation, CNPC), Russian gas will go to China in two directions – Western and Eastern.

“The Eastern route” involves the development of new fields in Eastern Siberia, primarily the Chayandinskoye and Kovykta (Irkutsk region and Yakutia). They will be built a gas pipeline “Power of Siberia” will connect to the gas pipeline Sakhalin – Khabarovsk – Vladivostok. In the area of Blagoveshchensk of the pipe will be constructed a branch line to China. On it, according to the contract signed on may 21, 2014 Gazprom and CNPC will supply 38 billion cubic meters of gas a year for 30 years. Contract amount – $400 billion Agreement on cooperation in the sphere of gas supply via the Eastern route was signed on 13 October 2014, Russia ratified it on may 2, 2015. The first supplies could start in 2018-2019.

“Western route” involves the supply of 30 billion cubic meters by pipeline from the Yamal-Nenets Autonomous district in Altai Krai to the North-West of China for 30 years. For this purpose, provides for the establishment of a new pipeline system “Altai” in the existing transport corridor from Western Siberia to Novosibirsk with follow-up continuation to the Russian-Chinese border. Direct deliveries scheduled to begin in 2019.

8 may 2015 in Moscow in the presence of Russian President Vladimir Putin and Chairman XI Jinping, the head of “Gazprom” Alexey Miller and Vice-President of CNPC van dancing signed an agreement on the basic conditions of gas supplies from Russia to China via the “Western route”. The contract has not been signed yet.