Gazprom statement on CNPC gas contract

Alexey Miller, Chairman of Gazprom's Management Committee and Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC) signed today a contract to supply pipeline gas from Russia to China via the eastern route. The parties signed the document in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping in Shanghai.

The 30 year contract stipulates that 38 billion m³ of Russian gas will be annually supplied to China. The mutually beneficial contract contains such major provisions as the price formula linked to oil prices and the 'take-or-pay' clause.

“Russia and China have signed the biggest contract in the entire history of the USSR and Gazprom – over 1 trillion m³ of gas will be supplied during a whole contractual period. Russian gas will be sold at a brand new market with a huge potential.The arrangement of Russian pipeline gas supplies is the biggest investment project on a global scale. US$ 55 billion will be invested in the construction of production and transmission facilities in Russia. An extensive gas infrastructure network will be set up in Russia's East, which will drive the local economy forward. Great impetus will be given to entire economic sectors, namely metallurgy, pipe and machine building.Today we started the first page of a big book, a fascinating story of the Russian-Chinese cooperation in the gas industry, and many more essential chapters are yet to be written in it,” said Alexey Miller.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/22052014/gazprom_and_cnpc_sign_gas_contract/