Gazprom Signs MoU With CNPC for Pipeline Gas Supply from Russia's Far East

Gazprom on Thursday said it has signed a Memorandum of Understanding on the project for pipeline gas supply to China from Russia’s Far East.

The memorandum was signed by Alexey Miller, Chairman of the Gazprom Management Committee and Wang Yilin, Chairman of the CNPC Board of Directors.

The ceremony was attended by Russian President Vladimir Putin and Chinese President Xi Jinping.

“The document reflects the parties’ intent to set up a joint working group for conducting a research on the project for gas supply. The research results will determine the key technical and commercial parameters of the project, including terms of delivery as well as a gas delivery point,” Gazprom said in a statement.

“The project for Russian gas supply from the Far East to China strengthens the strategic and mutually beneficial partnership between our companies,” said Alexey Miller.

On May 21, 2014 Gazprom and CNPC signed the Purchase and Sale Agreement for the Russian gas supply via the eastern route. The 30-year contract provides for Russian gas supplies to China in the amount of 38 billion cubic meters a 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.

Meanwhile on Tuesday Miller stated that eastern route pipeline project is proceeding according to schedule.

"All essentials are available, everybody shows proper and well-coordinated actions. The prime facilities for the eastern route of gas supplies to China are to be completed on schedule in 2018," Miller said.