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Agreement on eastern route gas supplies to China approved by Russian government commitee

The agreement was reached for the purpose of strengthening the Russia-China cooperation in the energy sphere

© AP Photo/Xinhua, Wang Jianwei

MOSCOW, March 3. /TASS/. The Russian government’s Committee for legislative drafting activities has approved the draft law on ratification of the agreement between the governments of Russia and China on eastern route gas supplies. The agreement was presented by the Russian Foreign Affairs Ministry and Energy Ministry. The document was published on the government website Tuesday.

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The agreement was signed by representatives of the Russian and Chinese governments on October 13, 2014.

The agreement was reached "for the purpose of strengthening the Russia-China cooperation in the energy sphere defining the main terms for cooperation regarding supplies of natural gas from the Russian territory to the territory of the People’s Republic of China on eastern route, including engineering, construction and operation of the cross-border section of the gas pipeline," the draft law said.

Completing the agreement is a condition of the gas contract between Russia’s Gazprom and China’s CNPC on eastern route supplies inked on May 21, 2014.

The draft law will be considered at a government session.

Russia-China gas deals

A milestone event for Russia’s energy sector took place in May when gas giant Gazprom and China’s CNPC struck a major deal on gas supplies to China. The contract stipulates that 38 billion cubic meters of Russian gas will be annually supplied to China via the eastern route over a period of 30 years. The contract is worth over $400 billion. The deal between the two companies was signed in the presence of Russian President Vladimir Putin and Chinese leader Xi Jinping.

At the Asia-Pacific Economic Cooperation (APEC) summit in Beijing in early November Russia’s Gazprom also signed a framework agreement on gas supplies to China via the western route. A proposed pipeline, known as the Altai route, is intended to carry gas from deposits in Western Siberia to North-Western China. Gas supplies to China via that route may reach 30 billion cubic meters a year. In 2015 the countries will sign at least three key documents on that project.

Energy cooperation between Russia and China also includes the oil industry. Russia’s largest oil company Rosneft supplies oil to China under a long-term contract. The $270 billion deal with China’s CNPC was signed in 2013, and it envisages supply of about 360 million metric tons of oil to China over 25 years. This year the two energy giants agreed to deepen strategic partnership.

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