Gazprom and China National Petroleum Corporation (CNPC) signed a long-term Sales and Purchase Agreement for natural gas to be supplied via the Far Eastern route.
The signing of this document is an important step towards further strengthening the mutually beneficial cooperation between Russia and China in the gas sector. As soon as the project reaches its full capacity, the amount of Russian pipeline gas supplies to China is going to grow by 10 billion cubic meters, totalling 48 billion cubic meters per year (including deliveries via the Power of Siberia gas trunkline).
“This is already a second contract to be signed for Russian gas supplies to China, and it is indicative of the exceptionally strong mutual trust and partnership between our countries and companies. Our Chinese partners from CNPC have already seen for themselves that Gazprom is a reliable gas supplier,” said Gazprom CEO Alexey Miller.
Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.
In 2014, Gazprom and CNPC signed the 30-year Sales and Purchase Agreement for 38 billion cubic meters of gas per year to be supplied via the eastern route (Power of Siberia gas pipeline). The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019.
In April 2021, the feasibility analysis regarding the construction project for the Soyuz Vostok gas trunkline was approved. In the course of the feasibility analysis, the basic technical and technological parameters of the project were established. These include the optimal route for the gas pipeline in Mongolian territory, the pipeline’s length and diameter, the working pressure, and the number of compressor stations.
In January 2022, the feasibility study was completed for the Soyuz Vostok gas trunkline construction project. The trunkline will become an extension of Russia’s Power of Siberia 2 gas pipeline in Mongolian territory and will make it possible to supply up to 50 billion cubic meters of gas per year to China.