Power of Siberia holds a course for the East

The 30-year contract for the supply of Russian pipeline gas to China, signed in May this year, became the largest in the history of the international gas industry and Gazprom - 38 billion cubic meters per year. This fact has opened absolutely new market with huge potential for the Russian natural gas.

For the duration of the agreement on the Power of Siberia gas pipeline, more than 1 trillion cubic meters of gas will be delivered. The total contract value is estimated at about $400 billion. The agreement was concluded on mutually beneficial and commercially attractive terms, on the principle "take or pay" and with the pricing formula, linked to the oil basket.

On September 1st, the celebration, dedicated to the welding of the first joint of the Power of Siberia gas transportation system, took place in Yakutsk; the Russian President, Vladimir Putin and the Deputy Prime Minister of the State Council of China, Zhang Gaoli, Chairman of the Gazprom’s Board Alexei Miller visited the event. Power of Siberia will be an important element of the gas supply system, which is created in the east of Russia. The gas supplies to China may start in four years, but each of the parties has the right to defer this date for a period of up to 2 years, depending on readiness of its own infrastructure and consumers for gas acceptance. The scope of the supplies will increase to the contract value during five years.