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Russia and China sign Framework Agreement on gas supplies via western routeNovember 9, 2014, 17:05
As part of the APEC summit in Beijing, a number of documents related to the Russian-Chinese cooperation in the energy sector were signed today in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping.
Alexey Miller, Chairman of the Gazprom Management Committee and Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC) signed a Framework Agreement on gas supplies via the western route. In particular, the document reflects such conditions as the volume and terms of supply, the take-or-pay level, the location of the gas delivery point on the border. The Framework Agreement defines the schedule of compiling a gas purchase and sale agreement, a technical agreement and an intergovernmental agreement on the western route.
In addition, Alexey Miller and Wang Yilin, Chairman of the CNOOC Board of Directors signed a confidential Memorandum of Understanding for cooperation in the oil and gas sector.
“Gazprom goes on boosting the cooperation with its Chinese partners. Power of Siberia, the world's largest project for gas supplies via the eastern route is well underway. Today the Framework Agreement has been signed for gas supplies via the western route. This legally binding document creates the necessary prerequisites for signing a gas purchase and sale agreement within this top-priority project.
Joint large-scale activities with our Chinese colleagues develop very fast. We set ourselves ambitious goals and we are confident that they will be achieved,” said Alexey Miller.
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, focused on hydrocarbon production and transmission as well as providing engineering and petroleum services.
The western route stipulates annual gas supply in the amount of 30 billion cubic meters from Western Siberia to China via the Altai gas pipeline.
On May 21, 2014 Gazprom and China National Petroleum Corporation signed the Purchase and Sale Agreement for the Russian gas supply via the eastern route. The 30-year contract provides for gas supplies in the amount of 38 billion cubic meters of gas per year.
CNOOC is the oldest out of the three major petroleum companies in China, holding an exclusive right for prospecting & exploration as well as for oil and gas production offshore China. CNOOC is also the largest LNG importer of China.
Information Directorate, Gazprom