Gazprom and CNPC prepare contract for Russian gas supply

Earlier this week, Beijing hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Zhou Jinping, Chairman of China National Petroleum Corporation (CNPC).

The meeting participants addressed the issue of Russian natural gas supply to the Chinese market via the eastern route. Both parties are interested in successful completion of the negotiations and are looking forward to signing a contract as soon as possible.

The parties noted that the negotiations were progressing as per schedule and the contract would enter into force in accordance with the previously agreed Major Terms – till late 2014.

It was suggested that the contract should be prepared for signing during Russian President's visit to China scheduled for this May.

Background

CNPC is China’s largest petroleum company wholly-owned by the state and is one of the world’s leading integrated oil and gas production companies

In October 2009, Gazprom and CNPC signed the Framework Agreement on the major terms and conditions of natural gas supply from Russia to China. The Agreement stipulates annual exports of up to 68 billion m³ of gas to the Chinese market. In September 2010 the Extended Major Terms of natural gas supply from Russia to China were signed.

In March 2013, Gazprom and CNPC signed the Memorandum of Understanding for cooperation between the two companies in pipeline gas deliveries to China via the eastern route.

In September 2013, Gazprom and CNPC inked the Agreement on the major terms and conditions of pipeline gas supply from Russia to China via the eastern route.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/23012014/gazprom_and_cnpc_prepare_contract_for_russian_gas_supply/