Gazprom and China’s CNPC sign document for additional supplies of Russian gas to be carried out via eastern route until end of 2023
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 in Beijing today.
The parties addressed a wide array of bilateral strategic cooperation issues. For instance, appreciation was expressed for the reliable supplies of Russian gas to China via the eastern route, i.e. the Power of Siberia gas pipeline.
Particular attention was paid to the implementation of the project for gas supplies via the Far Eastern route. Design development works are now in progress for the relevant gas pipeline.
Alexey Miller informed Dai Houliang about the progress of the design development works for the Soyuz Vostok gas pipeline project in Mongolia. It will become an extension of Russia's Power of Siberia 2 prospective gas pipeline.
It was noted at the meeting that there is a successful collaboration between the companies in other areas as well, including the cooperation in underground gas storage, sci-tech development and personnel training.
During the meeting, Gazprom and CNPC signed a Supplementary Agreement to the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route. The Supplementary Agreement provides for an additional volume of Russian gas to be delivered to China until the end of 2023.
Also signed by Gazprom and CNPC was an updated version of the Agreement to cooperate in the field of mutual recognition of standards and conformity assessment results, which is to replace the version that had been inked in 2016.
“With regard to all matters of cooperation in the gas sector, the negotiations were very constructive and substantive. Throughout the current year, the volumes of gas supplies via Power of Siberia have already risen by 46.6 per cent versus the same period of last year. Gazprom is ready to further ramp up the supplies and reliably provide its Chinese partners with natural gas via the agreed routes,” said Alexey Miller.
Background
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.
In 2016, Gazprom and CNPC signed the Agreement to cooperate in the field of mutual recognition of standards and conformity assessment results. The document provides for the joint work on the creation of intercorporate technical standards and their use in the activities of the companies.