Russian gas supplies to China via Power of Siberia to start in December 2019
RELEASE
Release
Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, today signed in Moscow a Supplementary Agreement to the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route, which had been inked by the parties on May 21, 2014.
The ceremonial exchange of the signed documents took place in the presence of Vladimir Putin, President of the Russian Federation, and Xi Jinping, President of the People’s Republic of China.
According to the Supplementary Agreement, gas supplies to China via the Power of Siberia gas pipeline will commence in December 2019.
“The signing of this document is a crucial step in the implementation of the project, a step achieved by Gazprom and CNPC thanks to clear and concerted action on both sides of the border. Our work is strictly on schedule, even ahead of schedule regarding Power of Siberia. Russian gas supplies to China will come right on time,” said Alexey Miller.
Developing gas resources and shaping gas transmission system in Eastern Russia
Background
Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.
On May 21, 2014, Gazprom and CNPC signed the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline). The 30-year Agreement provides for gas deliveries to China in the amount of 38 billion cubic meters per year, is oil-pegged and contains a take-or-pay clause.
On May 8, 2015, Gazprom and CNPC inked the Heads of Agreement for pipeline deliveries of natural gas from Western Siberian fields to China via the western route (Power of Siberia 2 gas pipeline).
On September 3, 2015, Gazprom and CNPC inked the Memorandum of Understanding for the project of pipeline gas supplies to China from Russia’s Far East.
On June 25, 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China.
On November 7, 2016, Gazprom and CNPC signed the Memorandum to explore the opportunities for cooperation in the NGV sector.