USA and China found alternative to Power of Siberia gas pipeline


The United States and China signed an agreement on the construction of a liquefied natural gas (LNG) plant in Alaska.

The plant’s capacity will be 20 million cubic meters per year, the project’s cost was estimated at $43 billion.

China Petrochemical Corp. (Sinopec Group) and Alaska Gasline Development Corp. signed an agreement under which liquefied natural gas from a plant in Alaska will be supplied to China. The project also involved the authorities of Alaska, China Investment Corp. and Bank of China Ltd.

The construction of a 800 kilometers long gas pipeline from the northern fields to the south of the state, where the plant will be located, will be done by Alaska Gasline Development Corp. The Chinese Sinopec Group is ready to participate in the project in exchange for 75% of the gas supplied by it.

Earlier, the head of Gazprom Alexei Miller said that liquefied natural gas would not be sufficient to cover the growing needs of China.