China completes final sections of Power of Siberia pipeline, boosting Russian gas imports further

China announced at the beginning of the week that it had completed the final sections of the Power of Siberia pipeline, which brings Russian gas into the country. Natural gas from Russia can now flow all the way to provinces on China’s eastern coast. Completion of the final sections should also allow the pipeline to operate at full capacity, or around 38 billion cubic metres a year.

Russia’s natural gas exports have declined in recent years, alongside the loss of most gas supplies to Europe. China offers one possibility for increasing exports, although the Power of Siberia pipeline uses different gas fields from those that previously supplied Europe. China has now announced the completion of the final 167-kilometre section, which connected the eastern province of Jiangsu, according to Reuters. This is expected to allow supplies to increase further from next year.

Gas began flowing through the pipeline in 2019, but, as is common with similar projects, it can take several years to reach its designed capacity. According to a representative of the Chinese state-owned company PipeChina, the pipeline currently carries around 110 million cubic metres of gas a day. By comparison, when operations began five years ago, the figure was just 15 million cubic metres a day.

According to Chinese media, gas deliveries through the pipeline are expected to reach its full capacity of 38 billion cubic metres next year. Compared with an estimated 30 billion cubic metres this year, that would be an increase of more than a quarter. At full capacity, the pipeline is expected to cover just under a tenth of China’s natural gas demand.