Gazprom and CNPC discuss 2023 plans for key areas of cooperation
RELEASE
Release
The meeting of the Joint Coordinating Committee (JCC) of Gazprom and China's CNPC moderated by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, Elena Burmistrova, Deputy Chairman of the Gazprom Management Committee, and Huang Yongzhang, Vice President of CNPC, took place today.
The meeting participants reviewed the results of their joint activities for 2022 and discussed the plans regarding key areas of cooperation for 2023.
It was pointed out that Gazprom is reliably supplying gas to China via the eastern route, i.e. the Power of Siberia gas pipeline.
During the meeting, Gazprom and CNPC agreed upon the dates of scheduled preventive maintenance to be performed on the Power of Siberia gas pipeline in the spring and autumn of the current year.
Particular attention was paid to the ongoing implementation of the arrangements provided for by the sales and purchase agreement for natural gas supplies via the Far Eastern route, which was signed by the companies in February 2022. This is the second long-term sales and purchase agreement for Russian pipeline gas supplies between Gazprom and CNPC. It was highlighted that the work within the project is proceeding in line with the schedule agreed by the parties.
The meeting of the JCC also addressed the matters pertaining to the cooperation between the companies in underground gas storage, personnel training and R&D.
Gazprom's representatives informed their Chinese colleagues about the progress of design development works for the Soyuz Vostok gas pipeline to supply Russian gas to China across Mongolia.
Background
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 38 billion cubic meters of gas per year to be supplied via the eastern route (Power of Siberia gas pipeline). The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019.
February 2022 marked the signing of the long-term Sales and Purchase Agreement for natural gas to be supplied via the Far Eastern route. As soon as the project reaches its full capacity, the amount of Russian pipeline gas supplies to China is going to grow by 10 billion cubic meters, totaling 48 billion cubic meters per year.
In 2020, Gazprom started to assess the possibility of supplying gas to China across Mongolia in the amount of up to 50 billion cubic meters of gas per year. In February 2022, design and survey works commenced as part of the Soyuz Vostok gas trunkline construction project. The trunkline will become an extension of Russia's Power of Siberia 2 gas pipeline in Mongolian territory.