A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Huang Yongzhang, Vice President of CNPC, took place today.
The parties discussed a wide array of matters pertaining to their strategic cooperation.
Special priority was given to Russian gas supplies. It was noted that highly reliable supplies of Russian gas via the eastern route, i.e. the Power of Siberia gas pipeline, help China confidently go through the heating season.
At present, Gazprom is preparing to further increase gas exports via Power of Siberia in accordance with the arrangements between the companies that provide for bringing daily supplies to the maximum contractual level ahead of schedule. It was highlighted at the meeting that Russian pipeline gas supplies to China throughout 2024 will be above the level provided for by Gazprom’s contractual obligations.
The work on the project for gas supplies via the Far Eastern route is proceeding strictly on schedule agreed by the companies.
Apart from that, the parties discussed the matters related to the implementation of prospective cooperation projects in the gas sector.
In addition, the meeting of the Joint Coordinating Committee of Gazprom and CNPC moderated by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Huang Yongzhang took place today.
The companies are successfully expanding their cooperation not only in gas supplies, but also in a wide range of other areas. For instance, in 2024, the new extended scientific & technical cooperation program for 2024–2028 was signed between Gazprom and CNPC. For the first time ever, the program will cover a five-year period.
This year, the companies also continued the practice of exchanging advanced methods for ensuring safe operation of production facilities and protecting the professional health and longevity of the employees.
Background
Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.
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) is in force between Gazprom and CNPC. The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019.
In September 2024, the parties signed the Supplementary Agreement to the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route. The document envisages additional supplies to be performed in December 2024, which means that the daily exports of gas to China via the Power of Siberia pipeline will be brought to the maximum contractual level ahead of schedule (not in early 2025, as had been previously planned).
February 2022 marked the signing of the long-term Sales and Purchase Agreement for natural gas to be supplied via the Far Eastern route. 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. In October 2024, the parties signed the Coordination Agreement that governs, inter alia, the interaction between the parties with regard to the operation of the adjacent gas pipeline systems in the course of the future supplies of Russian gas to China.
