CNPC Commences Construction of Chinese Segment of Russia-China Gas Pipeline

China National Petroleum Corp. (CNPC) announced Tuesday that the commencement ceremony of the Chinese part of the Eastern Route of Russia-China Gas Pipeline was held simultaneously June 29 via video link in Beijing, Moscow and the construction site in Heihe, Heilongjiang province in China. This has brought the overall pipeline connecting the two countries under construction. Chinese Vice Premier Zhang Gaoli gave the order to commence construction from the Great Hall of the People in Beijing, Russian Prime Minister Dmitry Medvedev delivered a speech in Moscow, and CNPC Chairman Wang Yilin presided over the commencement ceremony.

The Chinese part of the Eastern Route of Russia-China Gas Pipeline will run from the China-Russian border in Heihe of Heilongjiang Province and end at Shanghai, passing through nine provinces and cities including Heilongjiang, Jilin, Inner Mongolia, Liaoning, Hebei, Tianjin, Shandong, Jiangsu, and Shanghai. A 1,970 mile (3,170 kilometer) -long pipeline and auxiliary underground gas storages will be built. And an existing 1,118 mile (1,800 kilometer) -long pipeline will be included. Construction of the Russian part of the pipeline, which the Russian side named the Power of Siberia, started on Sept. 1, 2014.

On May 21, 2014, a gas purchase and sales contract via the eastern route pipeline was signed between CNPC and Gazprom. Under the 30-year contract, Gazprom will start transmitting gas to China via the Eastern Route from 2018, with gas delivery gradually increasing to 1.34 trillion cubic feet (38 billion cubic meters) per annum.

The imported gas will mainly supply China's Northeast, Beijing-Tianjin-Hebei area, and the Yangtze River Delta region, helping meet increasing clean energy demand, improve air quality, and optimize energy mix. The use of 38 Bcm of natural gas instead of coal will cut the emissions of carbon dioxide (CO2), sulfur dioxide (SO2) and nitrogen oxide (NOX) by 163.78 million tons, 1.82 million tons and 0.46 million tons, respectively.


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