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Gazprom, CNPC sign agreement on basic conditions of gas supply from Far East to China

In 2015, Gazprom and CNPC signed an agreement on the basic conditions of pipeline gas deliveries from Western Siberia to China

MOSCOW, December 21. /TASS/. Chief Executive Officer of Russia’s Gazprom company Alexey Miller and Chairman of China National Petroleum Corporation (CNPC) Wang Yilin have signed an agreement on the basic conditions of gas supply from Russia’s Far East to China, Gazprom said in a statement.

"The document determines the main parameters of the future supplies, including their volume, the contract period, the timeframe to start the deliveries, the period to increase supplies and the border crossing point. The parties plan to sign the contract in 2018," the statement reads.

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Russian Gazprom, Chinese CNPC start talks on gas deliveries timeframe

During the working meeting in Beijing, the sides gave high marks to gas partnership, noting that the companies are successfully implementing the project to export Russian gas to China via the so-called ‘eastern route’, and cooperating in a number of other areas, including underground gas storage, gas power generation, use of gas as motor fuel.

China’s state oil and gas company CNPC is Gazprom’s main partner in the country.

Currently, Gazprom is building the Power of Siberia gas pipeline, which will pump natural gas from the giant Chayanda oil and gas condensate deposit in Yakutia and the Kovykta gas condensate field in the Irkutsk Region in Eastern Siberia to deliver gas to the domestic market (via Khabarovsk to Vladivostok) and further on for exports to China. The pipe's section aimed for China will be built near Blagoveshchensk. The eastern route stipulates the supply of 38 billion cubic meters of natural gas to China annually within 30 years.

In 2017, Gazprom investment in the Power of Siberia pipeline increased to 158.811 billion rubles ($2.7 bln) from 76.162 billion rubles ($1.3 bln) .

The terms of the partnership in design, construction and operation of the cross-border zones of the gas pipeline are defined by an intergovernmental agreement dated October 13, 2014

In 2015, Gazprom and CNPC signed an agreement on the basic conditions of pipeline gas deliveries from Western Siberia to China via the "Western" route (Power of Siberia-2 pipeline). Initially supplies are envisaged at 30 billion cubic meters of gas per year.

Also in 2015, Gazprom and CNPC signed a memorandum of understanding on the project of pipeline shipments of natural gas to China from Russia’s Far East.

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