Gazprom Develops Chinese Link

Russian giant Gazprom and China National Petroleum Corporation (CNPC) have agreed to accelerate negotiations on Russian natural gas supply via the eastern route, Gazprom announced.

CNPC, 100% owned by the Chinese state, is the largest energy supplier in China. Its negotiations with the Russian state company are focused on a gas purchase and sale contract with a validity period until 2013. This deadline was set according to the decision of the Russian-Chinese Intergovernmental Commission on Energy Cooperation headed by Arkady Dvorkovich, Deputy Prime Minister of the Russian Federation and Wang Qishan, Vice Premier of the State Council of the People's Republic of China.

The parties confirmed previous arrangements for export of Russian gas export to China, including the volume of delivered gas, the starting date of supplies and their duration, gas delivery point on the border and other conditions. More talks will be held to finalise infrastructure and contract details.

In addition, the parties discussed co-operation on liquefied natural gas (LNG), especially regarding Gazprom's Vladivostok-LNG project. The meeting was led by Alexander Medvedev, deputy chairman of Gazprom.