Gazprom postpones construction of gas pipeline to China

Expenses for construction of the Power of Siberia gas pipeline for gas supplies to China, as well as for construction of necessary facilities at its resource base – the Chayandinskoye field – won’t be included into the Gazprom’s initial investment program for 2014 that will be considered by the company’s Board of Directors today, the ITAR-TASS reported. Today, the document will be also discussed at the special meeting at the Prime Minister Dmitry Medvedev’s office. Russian strategic enterprises must approve their investment programs in the Government, and their implementation must pass external audit, President Vladimir Putin said last week.

Two sources that are close to the concern confirmed to the Vedomosti that the Gazprom’s investments for the next year don’t take into account Power of Siberia and the Chayandinskoye field for while. According to one of them, expenditures for the gas pipeline and the field won’t be included into the investment program, while Gazprom doesn’t sign a gas contract with China. This was planned to be done before the end of the year, but now the terms are postponed to January-February, the other source says. Chinese ambassador to Russia Li Hui also said at the beginning of December that there weren’t guarantees of the contract signing before the end of this year.