Gazprom, CNPC to Decide on Gas Pipeline to China Via Mongolia

Russia’s Gazprom and China National Petroleum Corporation (CNPC) will need to decide whether their gas pipeline will run through Mongolia or not, Russian Natural Resources and the Environment Minister Sergei Donskoy on Wednesday.

“This issue will have to be discussed at the level of Gazprom and CNPC. As a buyer, they (CNPC) should make assessments, raise questions and put forth demands. Mongolia will have to answer these questions,”Donskoy said.

He said Mongolia’s proposal could be attractive since the pipeline will run mainly across the plains and therefore will need fewer booster stations. But problems may arise if the pipeline crosses nature reserves in Mongolia, he added.

Russia-China gas deal

In May 2014, Gazprom and China National Petroleum Corporation (CNPC) signed a $400 billion contract for the supply of Russian pipeline gas to China. Under the contract, Russia will supply 38 billion cubic meters of gas a year for 30 years.

CNPC is China’s largest petroleum company owned by the state and is one of the world's leading integrated oil and gas production companies.

In September 2013, Gazprom and CNPC inked an agreement determining major terms and conditions of pipeline gas supply from Russia to China via the so-called eastern route, which will transport 38 billion cubic metres of Russian gas to China.

The western route will deliver West Siberian gas to China from 2019.

(en.itar-tass.com   Edited by Topco)