Gazprom and China’s CNPC discuss relevant aspects of strategic cooperation
RELEASE
Release
A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Dai Houliang, Chairman of the Board of Directors of CNPC (China), took place today at the St. Petersburg International Economic Forum 2023.
The parties discussed relevant issues pertaining to the strategic cooperation between the two companies in terms of the existing and prospective projects. In particular, attention was paid to the progress of the project for gas supplies to China via the Far Eastern route. The design development works for the gas pipeline are going on in compliance with the schedule set out by the parties.
At the meeting, appreciation was expressed for the reliability of the gas supplies via the Power of Siberia pipeline. It was highlighted that since the beginning of this year the supplies have been regularly in excess of the daily contractual obligations of Gazprom.
During the meeting, Alexey Miller and Dai Houliang devoted a separate discussion to the matters related to further cooperation in the gas sector.
Background
The St. Petersburg International Economic Forum 2023 is being held at the EXPOFORUM Convention and Exhibition Centre from June 14 to 17. This year's main theme is ”Sovereign Development at the Basis of a Just World: Joining Forces for Future Generations.”
Gazprom's main partner in China is CNPC, a state-owned oil and gas company.
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) is in force between Gazprom and CNPC. The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019.
The long-term Sales and Purchase Agreement for natural gas to be supplied via the Far Eastern route was signed in February 2022. 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 prospective gas pipeline in Mongolian territory.