Gazprom and CNPC sign gas supply agreement
The Gazprom Management Committee Chairman Alexey Miller and the CNPC Vice President Wang Dongjin signed in Moscow the heads of agreement for pipeline gas supply from Russia to China via the western route.
Signed in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping, the document outlines the main technical and commercial parameters of the future supplies.
In addition, Alexey Miller and Wang Dongjin signed another agreement of strategic co-operation (previous 10 year agreement had expired in 2014) outlining the main areas of joint actions in the gas sector.
“The western route will provide access to the vast resources of Western Siberia for the Chinese market. The resource base is available. Gazprom will be able to start supplies upon completion of the gas pipeline.
In the meantime, the western route will not affect the Power of Siberia project. The intergovernmental agreement on the eastern route is ratified. Gazprom will fulfill its obligations right on time,” said Alexey Miller.
Background
State-owned petroleum company CNPC is one of the largest integrated energy companies in the world.
The western route envisages gas supply to China from Western Siberia's fields.On 10 November, 2014 Gazprom and CNPC signed the framework agreement on Russian natural gas supply to China via the western route.
The Power of Siberia is a gas trunkline intended for natural gas delivery from the Irkutsk and Yakutia gas production centers to the Russian Far East and China (eastern route).
On 21 May, 2014 Gazprom and CNPC signed the purchase and sale agreement for gas supply via the eastern route. The 30 year contract provides for Russian gas supplies to China in the amount of 38 billion m3/ yr.
Adapted from press release by Hannah Priestley-Eaton
Read the article online at: https://www.worldpipelines.com/business-news/11052015/gazprom-and-cnpc-sign-gas-supply-agreement/
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