Russia and China aiming for successful conclusion of negotiations on western route


Beijing hosted today working meetings among Alexey Miller, Chairman of the Gazprom Management Committee, Zhang Gaoli, First Vice Premier of China’s State Council and Wang Yilin, Chairman of the Board of Directors of China National Petroleum Corporation (CNPC).

The participants addressed the issues of bilateral cooperation, particularly the preparations for the contract on Russian natural gas supply to China via the western route. The parties highlighted that they aimed for the successful conclusion of negotiations which were progressing steadily.

In addition, the following areas of cooperation were considered: underground gas storage, power generation, machine-building projects for the oil & gas industry, and cooperation in third countries.


State-owned petroleum company CNPC is one of the largest integrated energy companies in the world.

The eastern route stipulates gas supply from the Yakutia and Irkutsk gas production centers to China via the Power of Siberia gas trunkline. On May 21, 2014 Gazprom and CNPC signed the Purchase and Sale Agreement for the Russian gas supply via the eastern route. The 30-year contract provides for Russian gas supplies to China in the amount of 38 billion cubic meters a year. Gas supplies under the contract will commence between May 2019 and May 2021.

The western route envisages gas supply to China from Western Siberia’s fields in the amount of 30 billion cubic meters a year. On May 8, 2015 Gazprom and CNPC inked the Heads of Agreement for pipeline gas supply from Russia to China via the western route.

Within seven months of 2015, Chinese gas import grew by five per cent in comparison with the similar period of 2014. At the same time, LNG supply declined, while pipeline gas supply grew by 11 per cent.

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