India seeks extension of Russian pipeline to China

Indian authorities are ready to start negotiations with Moscow on the extension of Russia’s planned pipeline to China, according to Indian press.

Reports suggest that Indian Minister of Oil and Gas, Dharmendra Pradhan, discussed the prospect of extending the gas pipeline with his Russian counterpart Alexander Novak during the World Petroleum Congress held in Moscow last week (World Petroleum Congress, 15 – 19 June, 2014).

It is also reported that the government of India’s new Prime Minister, Narendra Modi, is aimed at increasing the number of oil and gas sources to meet the country’s growing demand for energy. In this regard, the Indian delegation at the next BRIC summit, scheduled for July, intends to raise the issue of the proposed extension as part of the agenda.

Russia's Gazprom and China National Petroleum Corporation (CNPC) signed a 30 year contract in late May for the sale of Russian gas to China at a volume of 38 billion m³/yr with delivery along the eastern route. The Russian energy giant plans to launch the construction of the Power of Siberia pipeline in August.

Negotiations set to begin for the pipeline extension

India is set to start negotiating with Russia the extension of a US$ 30 billion gas pipeline. If the proposed pipeline from Russia via China's Xinjiang province materialises, it will be among the world's most expensive gas pipelines.

India is looking to set up a pipeline from Russia either through China or the same route as TAPI.

Contracts

Recently, Russia and China signed a 30 year gas contact worth US$ 400 billion. GAIL (India) has already tied up 2.5 million t of LNG from Russia; the supply will commence in 2020.

Edited from various sources by Elizabeth Corner

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