Intergovernmental Agreement for Russian gas supply to China to be ready soon


Beijing hosted today a meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Zhang Gaoli, First Vice Premier of China's State Council.

The parties addressed the progress with preparations for an Intergovernmental Agreement for Russian pipeline gas supply to China via the eastern route. It was pointed out that the document was at its final stage and could be signed in the near future. The meeting discussed the next specific steps for preparing a project for gas supply via the western route. Three main documents will be inked: an intergovernmental agreement, a commercial contract and a technical agreement.

Alexey Miller also met with Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC). The participants addressed the project for Russian gas supply to China via the eastern route and noted that it proceeded as planned. During the meeting the parties extensively discussed the further negotiation schedule to sign a contract for Russian gas supply to China via the western route.

In addition, Alexey Miller met today with Wang Yilin, Chairman of the CNOOC Board of Directors. The meeting considered the outlooks for LNG supply to China from Gazprom Group's portfolio. It was stressed that CNOOC had a vast experience in geological exploration, offshore field pre-development as well as offshore pipeline construction.

“The talks in China were held in the atmosphere of warmth, friendliness and confidence. Their results are highly important. At the meetings we outlined the new levels for interaction in the gas sector, with regard to supply volumes, long-term cooperation and new business segments.

The top priority of the current talks is the western route. The supply contract for 30 billion cubic meters of gas a year is being prepared. The Altai project is fully ready to initiate the construction. Later on, the second and third gas pipeline strings might be constructed to reach the potential output of up to 100 billion cubic meters a year.

The new areas of cooperation include joint projects in Russian and Chinese offshore oil fields, power generation projects in China as well as joint activities in third countries. Gazprom is ready to consider the possibility of pipeline gas export to China as an alternative to the Vladivostok LNG project,” said Alexey Miller summing up the results of the visit.


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.

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.

The eastern route stipulates the delivery of Russian natural gas from the Irkutsk and Yakutia gas production centers to China via the Power of Siberia gas trunkline.

The western route stipulates gas supplies from West Siberian fields to China.

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 the biggest oil and gas producer at China's shelf. The company is focused on field exploration and development as well as oil and gas production and sales in China.

The major CNOOC gas fields are located in the South China Sea. In 2013 CNOOC brought onstream Liwan 3–1, China's largest offshore gas field. Its reserves account for 170 billion cubic meters. In September 2014 CNOOC announced the discovery of Lingshui 17–2, a new vast deepwater field in the South China Sea.

CNOOC is the largest LNG importer to China.


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