Gazprom, CNPC Makes Progress on Gas Related Issues

Gazprom officials held talks with Chinese counterparts to discuss issues related to bilateral cooperation in the petroleum sector placing an emphasis on terms and conditions for Russian gas supplies (both via pipelines and in liquefied form) to China.

The Russian company’s headquarters hosted the meeting between Alexey Miller, Chairman of the Company's Management Committee, Zhang Ping, Chairman of the Chinese National Development and Reform Commission and Zhou Jiping, Vice President of China National Petroleum Corporation (CNPC).

The meeting paid special attention to the results of the design and survey operations for the Altai gas pipeline. It was highlighted that this gas transmission route would meet the growing energy demand in CNPC.

The Altai project envisages building a gas pipeline to supply natural gas from fields in Western Siberia to China via the western part of the Russian-Chinese border. The gas pipeline route will cover six Russian constituents: the Republic of Altai, the Altai Territory, the Novosibirsk Region, the Tomsk Region, the Yamal-Nenets Autonomous Area and the Khanty-Mansiysk Autonomous Area - Yugra.

The Altai gas pipeline construction will start only after the gas purchase and sale agreement is inked with the Chinese party.

"We made a step forward today," said Miller.

Gazprom and CNPC signed an agreement in 2004 which covers covers examination of the issues relative to the arrangement of natural gas supplies from Russia to China by Gazprom. The two energy giants are also looking for joint gas processing and gas chemical projects in Eastern Russia and in third countries. The Joint Coordinating Committee was set up to supervise the Agreement implementation.

In October 2009 Gazprom and CNPC inked the Framework Agreement on major terms and conditions for natural gas supply from Russia to China. In December 2009 the Basic Major Terms of Gas Supply from Russia to China were signed.