Gazprom's delegation travels to China
Led by Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee, Gazprom’s delegation has completed today a working visit to China.
In the course of the visit Gazprom’s representatives took part in the sessions of the Joint Working Group and Joint Coordinating Committee of Gazprom and China National Petroleum Corporation (CNPC).
The Coordinating Committee Members expressed their satisfaction with the work done, in particular, pointing to considerable progress achieved in the area of natural gas supply from Russia to China, with pertinent talks already initiated.
The parties agreed to deepen sci-tech cooperation between Gazprom and CNPC and their subsidiaries.
In the course of the trip the Russian and Chinese sides signed a Contract to engineer an underground gas storage facility in the oil dome Zhen-11. The facility will be designed by VNIIGAZ, a leading Research Center of Gazprom.
Currently standing at 2%, the share of natural gas in the Chinese energy balance is expected to grow to 10% over the next five years. Natural gas will be used in the household sector as commercial fuel and chemical feedstock as well as for power generation purposes.
Being the largest 100%-state owned oil and gas business in the country, China National Petroleum Corporation (CNPC) is a leading integrated oil and gas company of the world.
Incorporated in 1998 on the platform of the Oil Industry Ministry of PRC, CNPC is comprised today of companies running business in oil and gas exploration, development, production, transmission, storage as well as in oil refining, petrochemistry and research. CNPC is the largest crude oil producer & supplier and retains a dominating position in oil and gas production, processing and marketing over China. CNPC (its subsidiaries inclusive) delivers domestically 79% of overall oil supplied; controls 95% and 40% of China’s natural gas and oil refining markets, respectively, and is involved in 27 international projects.
Gazprom and CNPC signed an Agreement on Strategic Cooperation on 14 October 2004 in Beijing within the official visit of the Russian Federation President Vladimir Putin to the People’s Republic of China (PRC). The Agreement covers a wide spectrum of issues including scrupulous discussion of Gazprom’s natural gas deliveries to PRC. To supervise the Agreement implementation, the parties set up a Joint Coordinating Committee. The Committee resolved to set up a Joint Working Group for cooperation between the companies as well as working groups for major joint businesses.
Information Directorate, OAO Gazprom