Partnership between Russia and China in the sphere of natural gas steps up to an completely new level. In 2019, first volumes of Russian pipeline gas will be delivered to China.
The main partner of Gazprom on the Chinese market is China National Petroleum Corporation (CNPC) — the largest state-owned oil and gas company in China and one of the leading integrated oil and gas production companies in the world.
On May 21, 2014, Gazprom and CNPC signed the Purchase and Sale Agreement to supply Russian gas via the Eastern route. It is the biggest purchase and sale contract in the history of the global gas industry. The 30-years’ agreement implies delivering 38 bcm of natural gas annually to the PRC from Yakutia and Irkutsk gas production centers via the Power of Siberia gas trunkline.
On October 13, 2014, in Moscow the parties signed a Technical Agreement — a supplement to the Purchase and Sale Agreement. This document defines basic parameters of design, construction and operation of the Power of Siberia gas trunkline’s cross-border section. In addition, the document contains the main technical and technological features of gas transfer from seller to buyer.
On November 9, 2014, Gazprom and CNPC signed a Framework Agreement on gas supplies from Russia to China via the Western route, which foresees supplies of 30 bcm of gas annually during 30 years from Western Siberia’s fields via the Power of Siberia-2 pipeline. At the moment, the parties are working on the Purchase and Sale Agreement.
Both Russian and Chinese parties have already outlined the main technical and commercial parameters of the future supplies via the Power of Siberia-2 pipeline. They are defined by the Heads of Agreement for pipeline gas supply from Russia to China via the Western route, signed by the Gazprom Management Committee Chairman Alexey Miller and the CNPC Vice President Wang Dongjin.
On June 25, 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China.