China Launches Construction of Its Part of 'Power of Siberia' Gas Pipeline

China has started the construction of its part of the Power of Siberia gas pipeline; the welding of the first pipe joint is scheduled for the end of June.

Russia’s gas giant Gazprom says China has launched construction of its part of the Power of Siberia gas pipeline. The welding of the first joint is scheduled for the end of the month.

The company also says that construction work within Russia is proceeding according to the schedule.

Gazprom CEO Alexey Miller met on Tuesday in Beijing with Zhang Gaoli, Vice Premier of the People's Republic of China and Wang Yilin, the chairman of CNPC, China’s largest oil and gas producer and supplier.

The parties discussed gas supplies to China via the so-called Eastern and Western routes.

In 2014, Russia and China signed a 30-year gas supply contract that will see the construction of the East-Route Pipeline, also known as the Power of Siberia, which will provide China with 38 billion cubic meters of natural gas annually, starting in 2018.

This year the agreement has been ratified by the Russian government and President Putin.

According to Miller, the agreement provided the framework for negotiations on the Western Route. The next step in negotiations is signing of an agreement on Western Route supplies.

The construction of the Power of Siberia pipeline in Russia was launched on September 1, 2014, The Eastern Route will connect Russia's fields in eastern Siberia with northeast China through the city of Blagoveshchensk in the Russian Far East.