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09/03/2019 | Press release | Distributed by Public on 09/03/2019 07:38

Gazprom delegation visits China

A Gazprom delegation headed byAlexey Miller, Chairman of the Company's Management Committee, paid a visit to China today.

Beijing hosted working meetings of Alexey Miller with Han Zheng, Vice Premier of the State Council of the People's Republic of China, and Wang Yilin, Chairman of the Board of Directors of CNPC.

The meetings were focused on the state and prospects of energy cooperation, including pipeline gas supplies from Russia to China. Special attention was given to the status of preparations for gas supplies via the eastern route, which are going to start on December 1, 2019. Alexey Miller said that theChayandinskoye fieldhad been connected to thePower of Siberiagas pipeline in August.

It was noted at the meetings that Russian pipeline gas deliveries will help enhance the reliability of gas supplies across China and will make a substantial contribution to the implementation of China's plans for switching from coal to gas and for environmental improvements in the country. "China's gas market continues to grow at an accelerated pace, and in the current year alone, gas consumption in China will rise by an amount commensurate with the throughput of Power of Siberia," said Alexey Miller.

The parties placed a particular emphasis on the planned deliveries of natural gas from Russia's Far East and via the western route.

In addition, the meetings touched upon the collaboration in the areas ofunderground gas storageand gas-fired power generation in China.

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 30-year Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline). The document provides for gas deliveries to China in the amount of 38 billion cubic meters per year.

In 2015, Gazprom and CNPC inked the Heads of Agreement for pipeline deliveries of natural gas from Western Siberian fields to China via the western route (Power of Siberia 2 gas pipeline) and 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.

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