Russian gas giant Gazprom has signed new agreements with its Chinese partners to build and operate a cross-border gas pipeline on the Far East gas export route to China, according to Russian news agency Interfax. The signing ceremony took place on the sidelines of the St. Petersburg International Economic Forum. Petersburg (SPIEF) 2025.
The agreements include: The Phase 2 design, construction and operation agreement as well as the pipeline operation agreement signed between Gazprom and the National Oil and Gas Group of China (CNPC) and the China Pipe China pipeline Company (PipeChina).
Gazprom said that the agreements regulating cooperation between the parties during the start-up and operation phase of the cross-border pipeline, across the Ussuri River near Dalnerechensk (Russia) and Ho Lam City (China), including issues related to control of operation and technical maintenance.
In February 2022, Gazprom and CNPC signed a long-term gas purchase and sale contract via the Far East gas pipeline. When the project reaches its maximum capacity, Russian gas exports to China via the pipeline system will increase by 10 billion cubic meters per year.
Also according to Interfax, at SPIEF 2025, Gazprom CEO Alexei Miller and Chinese Deputy Prime Minister Dinh Tiet Tuong discussed important issues related to the strategic partnership on gas.
Gazprom said that at the meeting, bilateral cooperation on the Eastern route project was highly appreciated. Up to now, the total volume of gas exported via pipeline to China has exceeded 100 billion cubic meters.
The two sides also discussed the next steps to implement the gas project along the Far East route. Gazprom said the first phase of the gas exports via the pipeline are expected to start in 2027.
Mr. Alexei Miller and Mr. Dinh Tiet Tuong also discussed potential projects in the gas industry. The two sides expressed their desire to strengthen mutually beneficial partnerships, towards economic development for both countries and improving people's lives," Gazprom said in a statement.
Miller said global gas consumption will reach a record of 4,170 trillion cubic meters in 2024, an increase of 100 billion cubic meters compared to the previous year. It is forecasted that from now until 2050, global gas demand will increase at a rate 1.5 times faster than the overall increase in energy consumption. Accordingly, Russian gas companies predict global gas consumption will increase by nearly a third by 2050.
The Asia-Pacific region will play a key role in this growth. In 2024, this sector will contribute nearly half of global GDP growth. To maintain high economic growth momentum, this region needs to be supplied with abundant natural gas," said Miller.
The Power of Siberia pipeline began transporting gas to China in 2019, under a long-term purchase contract between Gazprom and the CNPC. Since 2020, the annual output supplied through the pipeline has exceeded the contract's commitment. On December 1, 2024, the daily gas supply via the Power of Siberia pipeline reached the contracted maximum level, one month earlier than originally planned.
The long-term contract for the Vientiane route was signed in February 2022. After the project was completed, gas exports from Russia to China via the pipeline increased from 38 billion to 48 billion cubic meters per year.
