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Design approval received for China-Russian gas pipeline

09 Oct 2014
China National Petroleum Corp has received approval for the design of the Chinese section of a vast pipeline between Russia and China.

The giant pipeline is set to ship $400 billion worth of Russian natural gas to China, following a gas supply deal signed in May. This deal opens up a new market for Russia following the risk of losing European customers.

The initial design shows the pipeline will start from Heihe city in the northeastern Heilongjiang province, running through provinces of Jilin, Inner Mongolia, Liaoning, Hebei, Tianjin Municipality, Shandong, Jiangsu to reach Shanghai.

Construction of the Chinese section will start in early 2015, with an estimated completion date of 2018. Once the pipeline is working efficiently, it is expected that 38 billion cubic metres of gas will be delivered per year.