Gazprom anticipates exceeding contractual supply targets ahead of schedule.
Russian energy company Gazprom announced a historic milestone on December 7, achieving its highest-ever daily volume of gas exports to China through the Power of Siberia pipeline. The record-breaking delivery, confirmed by the company on Sunday, exceeded planned volumes at the request of Chinese partners.
This marks the eighth time Gazprom has surpassed its daily supply record in 2023, highlighting the increasing demand for Russian gas in China. Under a long-term bilateral agreement, Russia is set to supply 38 billion cubic meters (bcm) of natural gas annually to China via the Power of Siberia pipeline by 2025.
Full Capacity Expected Ahead of Schedule
Gazprom projects that gas deliveries to China will reach the contractual maximum of 38 bcm by the end of 2024, a year earlier than anticipated. The company attributes this acceleration to robust Chinese demand for natural gas, driven by the country’s expanding energy needs.
Aleksey Miller, CEO of Gazprom, emphasized the strategic importance of these exports:
“We see demand for Russian gas in the growing Chinese market and the important role that Russian gas plays for a stable energy supply to the Chinese economy. Long-term contracts between Gazprom and CNPC strengthen the good neighborly relations of our countries.”
The Power of Siberia: A Key Energy Corridor
China receives the majority of its Russian gas supply through the Power of Siberia pipeline, a critical segment of the Eastern Route. This 3,000-kilometer (1,864-mile) pipeline within Russia connects with an additional 2,111 kilometers (1,311 miles) of pipeline in China, forming a massive infrastructure network designed to meet China’s growing energy demands.
The pipeline’s initial section was launched in December 2019, marking the first direct pipeline link for Russian gas exports to China. The project is part of a $400 billion, 30-year agreement signed in 2014 between Gazprom and the China National Petroleum Corporation (CNPC).
Strategic Energy Shift
Russia has significantly expanded its energy exports to Asia in recent years, compensating for the loss of European markets due to geopolitical tensions and Western sanctions following the Ukraine war. The shift underscores the growing importance of Asia, particularly China, as a key consumer of Russian energy resources.
As Russia continues to strengthen its energy ties with China, the Power of Siberia pipeline stands as a symbol of economic and strategic cooperation between the two nations.
