On a SideChina sees Russia as principal gas supplier
MOSCOW. May 12 (Interfax) The China National Petroleum Corporation (CNPC) considers deliveries from Russia to be the main source for meeting China's growing gas demand, the Gazprom press service said on Thursday after negations between a delegation led by CNPC Vice President Zhou Jiping and a Gazprom delegation led by deputy CEO Alexander Medvedev. The first deliveries from Russian fields in Western Siberia as part of the Altai project should begin in 2011. Volumes of gas deliveries should reach a level of 30 billion cubic meters by 2020. It was earlier reported that Turkmenistan and Kazakhstan have also been holding consultations with China on gas deliveries, with April seeing the signing of an intergovernmental agreement on the implementation of the interstate oil transportation project Turkmenistan-China and on the sale of 30 billion cubic meters of Turkmen gas to China each year. Kazakhstan's KazMunaiGaz and CNPC plan to jointly develop a basis for investment in the construction of a gas pipeline from Kazakhstan to China with a capacity of 30 billion cubic meters of gas per year by the end of 2006. The parties determined the first steps in the implementation of a protocol On Supplying Natural Gas from Russia to China and the schedule for further business negotiations. Gazprom (RTS: GAZP) and CNPC signed a protocol On Supplying Natural Gas from Russia to China in March 2006, which sets out the timeframe, volume and routes for supplying gas and price setting principles. The two companies plan to finish negotiations on supplying Russian natural gas by the end of 2006, so that the first deliveries along the Western route can begin in 2011. MOSCOW. May 12 (Interfax)
- The China National Petroleum Corporation (CNPC) will give priority to Russian natural gas as a source to satisfy its growing demand for gas, Gazprom said in a statement. A CNPC delegation led by CNPC Vice President Zhou Jiping and a Gazprom delegation led by deputy CEO Alexander Medvedev met at Gazprom on Thursday. "China confirmed the priority of supplying gas from Russia to meet China's growing gas demand," Gazprom said in a statement. The first deliveries from the Western Siberia field - the Altai project - to China should start in 2011. Gas supplies should reach 30 billion cubic meters by 2020. China is also holding talks on supplying gas with Turkmenistan and Kazakhstan. An intergovernmental protocol was signed in April on implementing a Turkmenistan-China gas pipeline project and selling 30 billion cubic meters a year of Turkmen natural gas to China. Kazakh oil and gas company KazMunaiGaz and CNPC have also discussed plans to work out investment plans to build a gas pipeline from Kazakhstan to China that would have a capacity of 30 billion cubic meters of a gas a year. The parties also agreed on the schedule for business negotiations. The next meeting will take place in early June. Gazprom and CNPC signed a protocol On Supplying Natural Gas from Russia to China in March 2006, which sets out the timeframe, volume and route (Western and Eastern) to supply gas and the principle of setting prices. The two companies are planning to finish business negotiations on supplying Russian natural gas by the end of 2006, so that the first deliveries along the Western route can already start in 2011. Deputy Gazprom CEO Alexander Ananenkov said last week that work is finishing up on a technical and economic study of the project to build the Altai gas pipeline. Fields in the Nadym-Pur-Tazov region are being considered as a possible resource base for this pipeline. One possible route for the construction of this pipeline is to build a new pipeline along the route of the existing Urengoi-Surgut-Chelyabinsk pipeline to the Aganskaya compressor station, and to continue the new gas pipeline along a gas pipeline to Nizhnevartovsk Gas Processing Plant, and then to the Novisibirsk Compressor Station in Kuzbass, after which the pipeline will pass through Altai territory (Barnaul-Biisk-Gornoaltaisk) from where it will enter China. The total length of the pipeline, which will pass through Khanty- Mansiisk autonomous district, Tyumen region and Altai territory will amount to 2,800 km. The pipeline project involves the construction of over 22 new compressor stations and increasing the capacity of 10 existing compressor stations. Construction on the gas pipeline is expected to begin in 2008 and it will have a construction budget of approximately $5 billion.