Gazprom and CNPC hold meeting of Joint Coordinating Committee

RELEASE

Shanghai hosted today another meeting of the Joint Coordinating Committee (JCC) between Gazprom and China National Petroleum Corporation (CNPC).

The meeting was chaired by the JCC Co-Chairmen – Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee and Wang Dongjin, Vice President of CNPC.

The parties noted the fast progress with the cooperation between the two companies in 2014 in the context of signing the Purchase and Sale Agreement by Gazprom and CNPC, stipulating natural gas supplies from Russia to China via the eastern route as well as the Framework Agreement on arranging gas supplies from Russia to China via the western route.

The meeting considered a wide spectrum of issues of the cooperation in the gas sector, in particular, the status of the project for gas supply from Russia to China via the eastern route, highlighting the necessity to promote the cooperation in underground gas storage in China with a view to secure reliable gas supplies.

The parties appreciated the experience gained in the sci-tech cooperation and resolved to continue the all-out interaction within the next triennial program.

The meeting participants agreed to consistently expand the cooperation and noticed the considerable potential of such areas as gas-based power generation, natural gas as a vehicle fuel, utilization of space communications at gas facilities, procurement of equipment and services for joint projects.

Gazprom's delegation visited CNPC process facilities in Shanghai, including the local Dispatch and Control Center.

“The tenth meeting of the JCC demonstrated the commitment of both companies to the comprehensive development of the partnership and mutual aspiration to its sustainable enhancement. Today specific tasks were given to arrange the relevant activities in all sectors,” said Vitaly Markelov summing up the meeting.

Background

CNPC is China's largest petroleum company wholly-owned by the state and is one of the world's leading integrated oil and gas production companies.

Gazprom and CNPC signed the Agreement of Strategic Cooperation on October 14, 2004. Once the document has expired as well as new promising businesses for both companies have emerged, the parties resolved to develop a follow-up Agreement, which secured new areas of their cooperation (initialed during the last meeting of the Joint Coordinating Committee).

The Joint Coordinating Committee is established to supervise the Agreement implementation. The Committee's resolution stipulated the set-up of the Working Groups supervising the main areas of companies' cooperation.

On May 21, 2014 Gazprom and CNPC signed the Purchase and Sale Agreement on natural gas supplies from Russia to China via the eastern route. The document was inked during the official visit of Russian President Vladimir Putin to China.

Pursuant to the accords aimed at boosting the activities on the western route by the two companies, Gazprom and CNPC signed the Framework Agreement on gas supplies via the western route on November 9, 2014.

 

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