Gazprom to start Altai gas pipeline construction to supply gas to China in 2011.

YUZHNO-SAKHALINSK, September 29 (Itar-Tass) -- Russia's national gas utility Gazprom may begin in late 2011 the construction of the Altai gas pipeline to supply gas to China, the Prime-Tass economic news agency said on Wednesday, quoting the company's deputy chairman Alexander Medvedev.

"Our schedule is like this: if the contract [on gas supplies] is
signed in July 2011, it will take us six months to take a final investment
decision both for the Russian and the Chinese side," he said, adding that
relevant documentation was ready and the Altai pipeline's route had
already been agreed and endorsed and was not subject to change. As
concerns investments required for the project, the figures will be made
public in 2011.
The construction of the would-be pipeline section on China's territory
will be done by the Chinese side, he said.
The sides have agreed a point at the Russian-Chinese border, via which
gas will cross into China - Kalasdaban. As was reported earlier, Gazprom
and the China National Petroleum Corporation (CNPC) signed expanded main
terms for Russian gas supplies to China. Under the document, Russia gas
supplies will stand at 30 billion cubic meters a year. The supplies might
start in 2015.
According to the Gazprom executive, during the previous round of
Russian-Chinese gas talks six months ago the side had agreed the price
formula based on 60 U.S. dollars. The price talks are expected to be over
within the next nine months, and the contract might be signed by July 2011.
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