Release
A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, took place today in Beijing, China.
The meeting participants reviewed the development prospects of the Chinese gas market and the strategic aspects of cooperation between Gazprom and CNPC, paying particular attention to gas supplies. It was noted that the preparation of facilities for Russian gas exports to China via the Power of Siberia gas pipeline from December 1, 2019, is going according to schedule. It is planned to start injecting natural gas into the pipeline in the third quarter of this year.
The parties discussed issues related to the planned deliveries of Russian gas to China from the Far East and via the western route.
In addition, the meeting touched upon the collaboration between the companies in the areas of gas-fired power generation, use of natural gas as a vehicle fuel, underground gas storage, and science and culture.
Background
Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.
On May 21, 2014, Gazprom and CNPC signed the 30-year Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline). The document provides for gas deliveries to China in the amount of 38 billion cubic meters per year.
In 2015, Gazprom and CNPC inked the Heads of Agreement for pipeline deliveries of natural gas from Western Siberian fields to China via the western route (Power of Siberia 2 gas pipeline).
In 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China and the Memorandum to explore the opportunities for cooperation in the NGV sector.
In July 2017, Gazprom and CNPC inked the Supplementary Agreement to the Sales and Purchase Agreement for gas to be supplied via the eastern route signed in 2014.
In December 2017, Gazprom and CNPC signed the Heads of Agreement for natural gas to be supplied from Russia’s Far East to China.
