- This is the second long-term sales and purchase agreement for gas to be signed by the companies.
- The Far Eastern route is going to increase the amount of Russian gas supplies to China by 10 billion cubic meters.
Gazprom and China National Petroleum Corporation (CNPC) signed a long-term Sales and Purchase Agreement for natural gas to be supplied via the Far Eastern route.
The signing of this document is an important step towards further strengthening the mutually beneficial cooperation between Russia and China in the gas sector. As soon as the project reaches its full capacity, the amount of Russian pipeline gas supplies to China is going to grow by 10 billion cubic meters, totaling 48 billion cubic meters per year (including deliveries via the Power of Siberia gas trunkline).
“This is already a second contract to be signed for Russian gas supplies to China, and it is indicative of the exceptionally strong mutual trust and partnership between our countries and companies. Our Chinese partners from CNPC have already seen for themselves that Gazprom is a reliable gas supplier,” said Alexey Miller.
Background
Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.
In 2014, Gazprom and CNPC signed the 30-year Sales and Purchase Agreement for 38 billion cubic meters of gas per year to be supplied via the eastern route (Power of Siberia gas pipeline). The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019.
In January 2022, the feasibility study was completed for the Soyuz Vostok gas trunkline construction project. The trunkline will become an extension of Russia’s Power of Siberia 2 gas pipeline in Mongolian territory and will make it possible to supply up to 50 billion cubic meters of gas per year to China.
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