The Russian Federation began supplying gas to consumers in China through the new Power of Siberia gas pipeline. It was symbolically “launched” by Russian President Vladimir Putin and Chinese President Xi Jinping.
This was reported by BusinessCensor with reference to the Russian media.
According to Putin, the launch of this gas pipeline will “bring to a new level” the interaction of the two countries in the energy sector. And it will increase the trade turnover between Russia and China by 2024 to $200 billion.
Head of Gazprom Alexey Miller called the Power of Siberia one of the company's largest projects.
In May 2014, Gazprom and the Chinese CNPC signed a contract for the supply of Russian gas to China via the eastern route. The concluded agreement, which entered into force in May 2015, was signed for 30 years. It assumes an annual supply of 38 billion cubic meters of Russian gas to China according to the Power of Siberia.
After negotiations in April 2019, Russian and Chinese leaders agreed to increase gas supplies by another 6 billion cubic meters.
The launch of Power of Siberia contributed to the growth of Gazprom shares: they rose more than 2% on the Moscow Exchange before the launch of the pipeline. Gas sales through the Power of Siberia could bring Gazprom about $1 billion in revenue.
As Kosatka.Media reported, Turkish President Erdogan announced the launch of Turkish Stream on January 8.