(Yicai Global) Dec. 3 -- The east route of the China-Russia natural gas pipeline project has gone into operation after five years in the making with the aim of meeting China's increasing demand for cleaner and more affordable fuel.
Built by China National Petroleum and Russia's Gazprom, the first section of the pipeline from Siberia into China's northeastern Jilin province is finished, The Paper reported. The second leg into northern Hebei province will be ready next October.
In May 2014, CNPC and Gazprom penned a 30-year deal worth USD400 billion to lay a natural gas pipeline to Shanghai, adding to pipelines from Central Asia and Myanmar running into China, a country where wintertime causes a surge in heating fuel demand.
Chinese President Xi Jinping had a video call with his Russian counterpart Vladimir Putin yesterday afternoon, as the two jointly watched the pipeline's launch ceremony, Xinhua News Agency reported.
The east route is expected to channel 5 billion cubic meters of gas to China next year. Once the last stretch to Shanghai is complete by 2024, the pipeline should carry 38 billion cbms of the low-emissions fossil fuel, Xinhua said.
Russian natural gas is competitively priced in comparison with other options imported to China's northern Bohai Bay region, according to IHS Markit.
Editor: Emmi Laine