Gas supply by Power of Siberia-2 to cost less than Power of Siberia

​Gas supply by the western route to China (Power of Siberia-2) will cost cheaper than by Power of Siberia, the International Energy Agency reported in the World Energy Outlook 2015.

The International Energy Agency states that capital expenditure by Power of Siberia is assessed at more than $30 bln for the development of the resource base and at $30 bln for the construction of the gas pipeline.

The cheaper variant of gas supply is the western route as it will use the existing resource base in the Western Siberia and existing transport infrastructure at the major part of the route, the International Energy Agency says.

China thinks the western route has a serious drawback – the entrance to China far from the main regions of demand that requires further development of gas transportation infrastructure.

The International Energy Agency forecasts a significant growth of the Russian pipeline gas supply to China which will make up 80 bln cubic m by 2040. The stake of export in the total volume of Russian gas export will reach 30% by 2040.