Russia's Gazprom supplies pipeline gas to China at above contracted level for first time

London — Russia's Gazprom supplied gas to China through the Power of Siberia pipeline at above contracted levels for the first time on Oct. 19, the company said.

Gazprom began its first gas exports by pipeline to China in December last year under a long-term agreement with CNPC, with flows averaging 10 million-12 million cu m/d since then.

"For the first time on Oct. 19 this year, the daily volume of Russian gas supplies at the request of the Chinese side exceeded the obligations under the contract," Gazprom said. "The excess was 20%."

Gazprom has said exports to China through the Power of Siberia are expected at some 5 Bcm in the first year of operation, which would imply an average of about 13 million cu m/d.

In 2021 during the second year of operations, supplies are expected to ramp up to 10 Bcm before increasing to the 38 Bcm/year capacity in the mid-2020s.

Gazprom said in June it was considering increasing the capacity of the Power of Siberia pipeline to 44 Bcm/year from its current design capacity.

It also said there was a potential for Russian pipeline gas export capacity to China to reach more than 130 Bcm/year in the future with the addition of other routes.

Gazprom has also begun design work on a second gas pipeline to link to the growing Chinese market -- a 50 Bcm/year artery that will carry Russian gas via Mongolia to some of China's biggest demand centers, dubbed Power of Siberia-2.