BP's planned pipeline will have an annual capacity of 20-30 bcm. It could be built through Mongolia and could also deliver gas to South Korea, which has recently joined the project. The Gazprom official said the firm was confident of its reserves, but would need strong financial support to build the line. He added that in the future the pipeline could be linked to huge gas deposits on the Yamal peninsula in the north of Western Siberia. But analysts said it would be difficult to secure Chinese cash for the gas of two projects now that the country could boast of solid gas reserves of its own.
China wants a single pipeline and it also indicates a preferred route.
Glaser said Gazprom had larger gas reserves than BP to feed the pipeline, and that the route was not a crucial question for creating a joint venture. The Gazprom official agreed. We still have to think about joining forces of both Russian and international companies on one unified pipeline project. All rights reserved. Republication or redissemination of the contents of this screen are expressly prohibited without the prior written consent of Reuters Limited.