13 September 2018

Cooperation between Gazprom and CNPC gradually evolving

The parties discussed a wide range of issues related to the strategic cooperation, noting that China was increasing its gas imports on the back of the rapidly growing gas demand. In that regard, a focus of the meeting fell on the future gas supplies to China via the Power of Siberia gas pipeline, scheduled to start on December 20, 2019.

Alexey Miller informed Wang Yilin that 93 per cent (over 2,010 kilometers) of Power of Siberia’s linear part stretching from the Chayandinskoye field to the border with China had already been welded and laid, while the submerged crossing under the Amur River at the cross-border section of the gas pipeline was nearly complete. The Chinese party informed of the progress with laying the gas pipeline across its territory.

The meeting addressed the current status of the talks on the project for gas supplies to China from the Russian Far East, as well as the prospects of the project for gas supplies via the western route. The parties also touched upon the joint efforts in gas-fired power generation, underground gas storage and wider use of gas as a vehicle fuel.



Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.

On May 21, 2014, Gazprom and CNPC signed the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline). The Agreement provides for gas deliveries to China in the amount of 38 billion cubic meters per year.

In 2015, Gazprom and CNPC inked the Memorandum of Understanding for the project of pipeline gas supplies to China from Russia’s Far East.

In 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China, the Memorandum to explore the opportunities for cooperation in the NGV sector, and the Agreement to cooperate in the field of mutual recognition of standards and conformity assessment results.

In July 2017, Gazprom and CNPC inked the Supplementary Agreement to the Sales and Purchase Agreement for gas to be supplied via the eastern route inked in 2014. According to the document, gas supplies will commence on December 20, 2019.

In December 2017, Gazprom and CNPC signed the Heads of Agreement for natural gas to be supplied from Russia’s Far East to China.



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