Gazprom, CNPC Sign Agreement on Power of Siberia Cross-Border Section
Gazprom and CNPC on Thursday signed an agreement in Beijing to design and construct the cross-border section of the Power of Siberia gas pipeline, including its submerged crossing under the Amur River.
The documents were signed by Alexey Miller, Chairman of the Gazprom Management Committee and Wang Yilin, Chairman of the Board of Directors of CNPC in the presence of Russian Prime Minister Dmitry Medvedev and Li Keqiang, Premier of the State Council of China, Gazprom announced.
The agreement on design and construction of the cross-border section of the Power of Siberia gas pipeline, including the submerged crossing under the Amur River, also sets the procedure of technical decision making, engineering and construction of the section. Special attention is paid to the submerged crossing under Amur. The document was signed within the Sales and Purchase Agreement for the Russian gas supply to China via the eastern route.
“Today (Thursday) we signed a whole range of important documents to deepen our strategic partnership with Chinese colleagues. They include an agreement on the cross-border section of Power of Siberia to connect the Russian and Chinese gas transmission systems. The eastern route is steadily progressing. The contract has entered into full legal force. Power of Siberia is advancing up to schedule, the resource base is expanding, the Amur GPP has entered its construction phase. All the necessary facilities will be completed within the contract terms,” said Alexey Miller.
On May 21, 2014 Gazprom and CNPC signed the Sales and Purchase Agreement for the Russian gas supply via the eastern route (Power of Siberia gas pipeline). The 30-year contract provides for gas supplies to China in the amount of 38 billion cubic meters of gas per year.
On May 8, 2015 Gazprom and CNPC inked the Heads of Agreement for pipeline gas supply from Russia to China via the western route (Power of Siberia-2 gas pipeline). Initially, 30 billion cubic meters of gas a year are due to be delivered to China from Western Siberian fields.
In September this year, 2015 Gazprom and CNPC signed the Memorandum of Understanding on the project for pipeline gas supply to China from the Russian Far East.
The Joint Coordinating Committee (JCC) between Gazprom and CNPC supervises the implementation of the Agreement of Strategic Cooperation between the two companies.
The Amur GPP with the design capacity of up to 49 billion cubic meters of gas a year will be constructed near Svobodny in the Amur region. The GPP will comprise the world's largest helium plant. The plant will be supplied via the Power of Siberia gas pipeline with multi-component gas from the Yakutia and Irkutsk gas production centers being set up by Gazprom within the Eastern Gas Program.