Russian President Vladimir Putin and Chinese leader Xi Jinping are set to open the new gas pipeline "Power of Siberia" on Monday. The opening ceremony will be broadcast online.
The official ceremony was confirmed by the Chinese Foreign Ministry earlier in mid-November.
How It Started
The Russian gas giant "Gazprom" agreed on the construction of the pipeline almost twenty years ago.
In 2012, the Russian President authorised the general manager of Gazprom Alexey Miller to start the construction work as soon as possible.
The start of the project, however, was slowed by the differences on the gas prices before the final agreement was struck in May 2014 between the Russian Gas company Gazprom and China National Petroleum Corporation (CNPC) on the creation of a major new pipeline system to supply Russian gas to northeastern China.
As an added bonus, the pipeline will also be able to transport tens of billions of cubic meters more to the domestic Russian market in Russia's Far East.
Gas began to be injected into the Power of Siberia network in late October. The company expects the pipeline to reach its 38 billion cubic meter export capacity by 2025.
30-Year, $400-Billion Deal
The 30-year framework contract between Russia and China, signed in 2014, is estimated to be worth $400 billion.
The project's cost includes an investment of the equivalent of about $12 billion for the construction of the pipeline itself, and $6.7 billion more for investment in gas production.
#Russia & #China deepen ties with River Amur bridge | Article [AMP] | Reuters https://t.co/X9HTD6COdh A '#Power of #Siberia' natural #gas pipeline was also signed in a 30-year, $400-billion deal #Ukraine #natural #energy #trade #transport #construction #Engineering pic.twitter.com/IQV1lJbsJz— Dr. Alia Shah (@aliya_Hshah) November 30, 2019
Earlier this year, Gazprom announced ambitious plans to account for over a quarter of China's gas imports by 2035 amid the Asian economy's growing demand for clean energy.
Russia expects supplies of 4.6 billion cubic meters to China in 2020, and in 2025, supplies of 38 billion cubic meters are expected.
'Power of Siberia' accounts for the Eastern route to China, while the Western route is dubbed as "Power of Siberia-2".
It is also the largest pipeline in the eastern part of Russia.