Working meeting of Alexander Ananenkov with representatives of Royal Dutch Shell and ExxonMobil
Release
A working meeting was held in the central office of Gazprom on July 24 between the Acting Chairman of the Management Committee Alexander Ananenkov and representatives of Royal Dutch Shell and ExxonMobil. The meeting was devoted to the issues of interaction between Gazprom, Royal Dutch Shell, ExxonMobil and PetroChina in implementation of the West – East project related to realization of the Framework Agreement on setting up a joint venture, dated July 4, 2002.
Background
The West – East gas pipeline project assumes development of the fields of the Tarim basin, construction and operation of the 4000-km long pipeline as well as gas sales in the Eastern regions of China. According to the project, the first phase of the project stipulates production and transmission of 12 bcm of gas annually.
Currently the share of natural gas in the fuel balance of China is just 2%. Due to implementation of the project the index will rise as high as 10% in the nearest five years. Domestically produced gas will be used in the municipal sector, as an industrial fuel, a feedstock for the chemical industry as well as in power generation.
The project is carried out by Gazprom, Royal Dutch Shell, ExxonMobil and PetroChina, which is an affiliated company of CNPC (China National Petroleum Corporation) – the biggest state oil and gas company of China and one of the major oil and gas producers in the world.
The Framework Agreement on setting up a joint venture, signed by the participants on July 4, 2002, is a fundamental document adjusting interrelations between the partners within the frames of the project.
Information Directorate, OAO Gazprom