Gazprom, CNPC Near to Signing a Deal for Russian Gas Supply to China



Russia's OAO Gazprom reported Wednesday that Beijing hosted a working meeting between Alexey Miller, chairman of the Gazprom Management Committee and Zhou Jiping, chairman of China National Petroleum Corporation (CNPC).

The meeting participants addressed the issues of Russian natural gas supply to the Chinese market via the eastern route. Both parties are interested in successful completion of the negotiations and 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 inked 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 2.4 trillion cubic feet (68 billion cubic meters) 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.



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