Gazprom advancing Power of Siberia 2 gas pipeline

Gazprom chairman Alexey Miller told Russian president Vladimir Putin in a working meeting that design and survey work on the 50 billion cu m/year Power of Siberia 2 natural gas pipeline is continuing as anticipated. Work on the line, which would deliver gas to western China via Mongolia, began earlier this year (OGJ Online, Mar. 30, 2020).  Preparations to begin the line’s Mongolian section have also begun.

Miller held a video call with Mongolian prime minister Ukhnaagiin Khurelsukh to sign a letter of intent establishing a special-purpose company to conduct a feasibility study for the gas pipeline route and choose the best option. The company expects results of the study to be available as early as first-quarter 2021.

Gazprom says the project will expand gas infrastructure in Eastern Siberia and the Transbaikal Territory and create a new export corridor for delivering gas from Yamal to Asian markets.

The company is also expanding its domestic distribution network, building 2,350 km of gas pipeline bringing gas to 319 localities over the course of 2020. It says that by the end of the year 71.4% of Russia will have access to natural gas. 

Gazprom is nearing completion of drafting its next 5-year program for gas supply and gas infrastructure expansion, which it says will include “67 constituent entities of the Russian Federation.” The company plans to build 24,400 km of line by 2025, providing 3,632 localities with gas and reaching a gas penetration rate of 74.7%.

Miller also suggested that Putin consider appointing Gazprom as a single operator of programs for future gas supply and gas infrastructure expansion. Gazprom would perform all construction of gas pipeline branches, building both inter-settlement gas pipelines and intra-settlement gas pipelines to individual land plots and households, the latter of which Russian constituent entities currently execute. Putin responded that he would instruct the government to address the issue jointly with Gazprom.

Gazprom reported a 5% increase in gas supplies to Russian consumers between July 2020 and August 2020 and 12% growth in export volumes over the same period. It said shipments to Europe in August 2020 exceeded 16.3 billion cu m, comparable to same period a year earlier. The company predicted that total 2020 shipments to Europe would be among the five highest yet recorded.