Russia starts work on gas pipeline to China

November 2008 Vol. 235 No. 11

Russia has formally decided to start work next year on a gas pipeline to China’s western Xinjiang province.

Russian gas monopoly Gazprom promised last year that it would build two major pipelines to China, but development had been delayed because of disagreements over gas price.

The price negotiations still have not been settled but the governor of Altai Republic, the Russian region which the pipeline will run through, announced earlier this week that work would go ahead next year. The governors aid that specific pipeline route is currently being determined.

Gazprom’s Deputy Chief Executive Officer Alexander Ananenkov confirmed the plan and the decision was finalised at the weekend.

The cost of the gas pipeline is estimated at $US5 billion and it will deliver 30-40 Bcm/a of gas once it is completed.