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Gazprom, China Petroleum Corporation discuss gas export parmeters

The two companies study opportunities for new projects in gas processing and gas chemistry in eastern Russia and in third countries

MOSCOW, March 13 (Itar-Tass) – Gazprom CEO Alexei Miller and China National Petroleum Corporation President Jiang Jiemin have discussed in Beijing commercial and technological parameters of gas supplies to the Chinese market, in particular, through a new pipeline dubbed Siberian Force, the Russian gas giant said in a statement on Wednesday.

Moreover, they exchanged opinions on how to step up cooperation in underground gas storage in China and LNG supplies within the framework of the Vladivostok LNG project.

China National Petroleum Corporation is the biggest state-run oil and gas corporation of China, where the government owns a 100 percent stake. It is one of the leading integrated oil and gas producing companies in the world.

Gazprom and China National Petroleum Corporation signed an agreement on strategic cooperation on October 14, 2004. The document among other things envisages Gazprom’s maintenance of gas supplies from Russia to China.

Moreover, the two companies study opportunities for new projects in gas processing and gas chemistry in eastern Russia and in third countries.

In October 2009 Gazprom and China National Petroleum Corporation signed a framework agreement on major terms and conditions for natural gas supply from Russia to China.

In December 2009 the major terms for gas supplies were inked.

At present, Gazprom and China National Petroleum Corporation continue talks on commercial parameters of the projects envisaging Russian gas exports of up to 68 billion cubic meters to China a year.

Siberian Force will become a common gas pipeline network for gas production centres in Irkutsk and Yakutia and will pump gas from these centres through Khabarovsk to Vladivostok.

At the first stage the Yakutia-Khabarovsk-Vladivostok pipeline will be built. At the second stage Irkutsk gas production centre will be connected with Yakutsk gas production centre though a pipeline.

Siberian Force will run along Eastern Siberia-Pacific Ocean pipeline to optimize infrastructure and energy saving costs and will surmount bogs, mountainous and quake-prone areas.

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