GAZPROM - CNPC COOPERATION

GAZPROM - A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, took place at the 4th Eastern Economic Forum in Vladivostok.

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.

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Background

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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Earlier: 

2018, June, 13, 13:30:00 GAZPROM - CNPC COOPERATION GAZPROM - The meeting participants reviewed a wide range of issues regarding cooperation in the gas sector, including the status of the project for gas supplies via the eastern route (Power of Siberia). It was noted that the project was going according to schedule, with the gas pipeline’s linear part from the Chayandinskoye field to the Chinese border completed by 84.4 per cent (over 1,820 kilometers). Pipe pulling operations were finished in the second tunnel of the crossing under the Amur River within Power of Siberia’s cross-border section. Русский | English

2017, February, 16, 19:00:00 GAZPROM - CNPC COOPERATION Gazprom and CNPC broadening strategic cooperation in energy sector Русский | English

2016, June, 27, 18:35:00 GAZPROM & CNPC ROUTES The parties addressed further steps in the bilateral strategic partnership in the gas industry, particularly Russian gas exports to China. Among other issues discussed were prospects for cooperation in the field of underground gas storage and power generation in China. Русский | English

2016, June, 16, 18:15:00 CHINEESE MONEY FOR RUSSIA Among the major shareholders of Yamal LNG are local gas producer Novatek (50.1%), Total (20%) and CNPC (20%). The Silk Road Fund has become the second Chinese strategic investor in the project, after China National Petroleum Corp. (CNPC) provided $5 B of investment for Yamal LNG. Under the terms of the agreement, the Silk Road Fund will provide approximately $800 MM for the implementation of the project over the next several years.

2016, May, 31, 19:50:00 CNPC & GAZPROM COOPERATION The parties discussed relevant cooperation issues, placing an emphasis on planned gas supplies to China via the eastern and western routes, as well as the prospects of collaboration in the field of underground gas storage, gas-fired power generation, and natural gas vehicles. Русский | English

2015, December, 29, 19:50:00 CNPC & GAZPROM AGREEMENT CNPC said the entire pipeline project is expected to be completed and operational by the end of 2018. Construction of the Chinese section began in June 2015, while construction of the Russian section began in September 2014

2014, September, 4, 18:30:00 CHINA: GOOD FOR RUSSIA Deals with CNPC seen good for Russian firms