Deliveries are expected to start this year and continue till the end of 2022, according to the data published on state trading platforms. They will be overseen by Gazprom Invest, the company arm in charge of its largest investment projects.

Around 1.3 million tons of pipes are meant to be used for both domestic gas routes and supplies to Russia’s trading partners. According to Russian media, some deliveries are meant for the Power of Siberia pipeline, the largest gas transmission system in Russia’s East. While the project, meant to annually deliver 38  billion cubic meters of gas to China, has been operational since the end of last year, Gazprom plans to connect one more gas field to the pipeline by the end of 2022.

While it is not clear how much of the purchases are meant for the Russian-Chinese project, part of the supplies will go to the Ukhta–Torzhok and the Bovanenkovo–Ukhta gas trunklines. The two lines are connected, with the latter conveying gas from Siberia’s Yamal Peninsula into Russia’s Unified Gas Supply System. From Torzhok, gas is delivered to northwestern Russia to cover domestic demand and further into Europe. 

The tender, with the starting price set at 98.4 billion rubles, is set to be finalized on June 16. According to Interfax, the pipe deal is more than twice as much as Gazprom’s previous such purchases. The previous largest deal, worth 41 billion rubles, was sealed in 2018.

For more stories on economy & finance visit RT’s business section

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

The Folly of Paul Ryan’s Border-Adjustment Tax

That House Speaker Paul Ryan has decided to push this border-adjustment corporate tax plan is truly a mystery. He must know its drawbacks compared to other, simpler reform proposals. He must also know that such a plan will evoke retaliation…

Exclusive: U.S. Fed, banks discuss possible leniency on liquidity threshold to aid lending – sources

WASHINGTON (Reuters) – The U.S. Federal Reserve is talking with lenders about potentially going easy on them if they deplete their liquidity reserves while trying to support customers hurt by coronavirus disruption, according to three people with knowledge of the…

Trump: Getting ‘more and more happy’ with Fed Chair Powell during pandemic

WASHINGTON (Reuters) – President Donald Trump on Wednesday indicated he was warming to Federal Reserve Chairman Jerome Powell, whom he has harshly criticized for not cutting lending rates below zero, telling Fox Business Network he appreciated the central bank putting…

Possible safety issue spurs pause of COVID-19 antibody study

Independent monitors have paused enrollment in a study testing the COVID-19 antiviral drug remdesivir plus an experimental antibody therapy being developed by Eli Lilly that’s similar to a treatment President Donald Trump recently received. Lilly confirmed Tuesday that the study…