Gazprom and China address gas supply projects
A Gazprom delegation headed by Alexey Miller, Chairman of the Company's Management Committee, paid a working visit to China today.
During the visit a meeting was held between Alexey Miller and Zhang Gaoli, First Vice Premier of China's State Council.
The parties addressed strategic bilateral cooperation. It was noted that the collaboration between Gazprom and Chinese energy companies and financial institutions was consistently developing.
The meeting discussed issues related to pipeline exports of Russian gas to China. In particular, the meeting focused on the eastern and western routes. Progress was recorded in all areas of cooperation.
Another meeting was held today between Alexey Miller and Wang Yilin, Chairman of the Board of Directors of CNPC. Particular attention was given to gas exports to China via the western route. The parties also addressed prospective collaboration in the field of underground gas storage in China, power generation, and use of gas as a vehicle fuel.
CNPC is China's state-owned oil and gas company and one of the world's leading integrated energy companies.
On May 21, 2014, Gazprom and CNPC signed the Sales and Purchase Agreement for gas to be supplied via the eastern route (Power of Siberia gas pipeline). The 30-year Agreement provides for Russian gas deliveries to China in the amount of 38 billion cubic meters per year.
On May 8, 2015, Gazprom and CNPC inked the Heads of Agreement for pipeline deliveries of natural gas from Russia to China via the western route (Power of Siberia 2 gas pipeline). At the initial stage, 30 billion cubic meters of gas is planned to be annually delivered from Western Siberian fields.
On September 3, 2015, Gazprom and CNPC signed the Memorandum of Understanding for the project of pipeline gas supplies to China from the Russian Far East.
On March 3, 2016, Gazprom and Bank of China Limited, London Branch, entered into a five-year EUR 2 billion loan facility agreement. It is the largest deal in Gazprom's history in terms of the amount of financing attracted directly from a single financial institution, as well as its first bilateral loan facility agreement with a Chinese bank.