Gazprom and CNPC hold 14th meeting of Joint Coordinating Committee
The 14th meeting of the Joint Coordinating Committee (JCC) of Gazprom and CNPC moderated by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Hou Qijun, Vice President of CNPC, took place today in Guangzhou, People’s Republic of China.
The meeting participants discussed the results of the programs implemented by the JCC working groups, as well as the prospects of cooperation between the companies in key focus areas.
Specifically, the parties reviewed issues related to gas-fired power generation, use of gas as a vehicle fuel, underground gas storage in China, standardization, staff training, and sci-tech and cultural cooperation.
Particular attention at the meeting was paid to future supplies of natural gas from Russia to China. It was noted that the bulk of work on the Power of Siberia gas pipeline’s linear part stretching from the Chayandinskoye field to the Russian-Chinese border would be completed before the end of 2018.
Developing gas resources and shaping gas transmission system in eastern Russia
At the end of the meeting, the JCC working groups’ action plans for 2019 were approved.
Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.
In 2014, Gazprom and CNPC signed the 30-year Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline). The document provides for gas deliveries to China in the amount of 38 billion cubic meters per year.
In 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).
In 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China and the Memorandum to explore the opportunities for cooperation in the NGV sector.
In July 2017, Gazprom and CNPC inked the Supplementary Agreement to the Sales and Purchase Agreement for gas to be supplied via the eastern route inked in 2014. According to the document, gas supplies will commence on December 20, 2019.
In December 2017, Gazprom and CNPC signed the Heads of Agreement for natural gas to be supplied from Russia’s Far East to China.