“Today is an extraordinary day, a truly historic event not only for the global energy market, but above all for us, Russia and China,” said Vladimir Putin in his speech at the inauguration of the 'Power of Siberia' gas pipeline on December 2. Russian president, Vladimir Putin, and Chinese president, Xi Jinping, kicked off Russian gas deliveries to the People's Republic via the so-called “eastern route” by video conference. “This year we are celebrating 70 years since the diplomatic ties between Russia and China were established and we are starting to supply China. This move takes the Russian-Chinese strategic partnership in the energy sector to a whole new level and brings us closer to the goal of increasing trade to $ 200 billion by 2024,” Putin added.
Completed so far is the 2,200 km section running from the Chayandinskoye field in Yakutia to Blagoveshchensk (on the border with China). The second phase, around 800 km long, will join up to another mega field in Kovykta. The total length of the pipeline will therefore be 3000 km. The pipeline has taken more than five years to construct and required a total investment of 1.1 trillion rubles (more than 15 billion euros). Gazprom and the Chinese CNPC signed a thirty-year agreement in May 2014 for the annual supply of 38 billion cubic meters of gas in May 2014. The total value of the contract is around 400 billion dollars. By 2020, Gazprom might be able to supply up to five billion cubic meters of gas to China, up to ten by 2021 and up to 15 by 2022. A design capacity of 38 billion cubic meters is expected to be reached by 2025.