Russia and China signed fresh agreements to expand natural gas supplies and move forward with the Power of Siberia 2 pipeline project, Gazprom CEO Alexey Miller said Tuesday.
Miller said Gazprom and China National Petroleum Corp. (CNPC) inked a memorandum on strategic cooperation that includes a legally binding deal with Mongolia to build the Power of Siberia 2 line and the Soyuz-Vostok transit route across Mongolian territory.
The route could supply as much as 50 billion cubic meters of gas a year to China, he said.
Miller added that Gazprom and CNPC also agreed to increase the capacity of the existing Power of Siberia pipeline from 38 billion to 44 billion cubic meters annually, and to raise shipments through the Far Eastern Route from 10 billion to 12 billion cubic meters.
He said details on gas pricing would be announced later, noting that payments are currently split between rubles and foreign currencies.
Miller emphasized that gas sent to China comes from eastern Siberia, while exports to Europe originate in western Siberia, which makes Chinese deliveries cheaper due to geographic proximity.
Reporting by Emre Gurkan Abay in Moscow
Writing by Handan Kazanci
Anadolu Agency
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