Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, signed in Beijing a Memorandum of Understanding in the field of underground gas storage and gas-fired power generation.

The signing ceremony was attended by Vladimir Putin, President of the Russian Federation, and Xi Jinping, President of the People's Republic of China.

According to the document, the signatories intend to explore the prospects for cooperation in building underground gas storage (UGS) and gas-fired power generation facilities in China.

The parties will analyze and assess the geological, technological, and economic conditions for creating UGS facilities in Heilongjiang, Jiangsu, and Zhejiang. A joint venture will be set up to implement UGS-related projects. By late August, the parties will examine and select target projects in the field of gas-fired heat and power generation from among those offered by CNPC in order to make an investment decision and choose an organizational and legal framework for projects to be executed.

“The Russian-Chinese dialogue in the gas sector is crossing into new territory. Our cooperation in the field of underground gas storage and power generation will help deepen the relationship between the companies and considerably improve the environmental situation in China,” said Alexey Miller.

About Gazprom and CNPC

CNPC is China's state-owned oil and gas company and one of the world's leading integrated energy companies.
In 2014, Gazprom and CNPC signed the Sales and Purchase Agreement for gas to be supplied via the eastern route (Power of Siberia gas pipeline). The 30-year Agreement provides for Russian gas deliveries to China in the amount of 38 billion cubic meters per year.
In 2015, Gazprom and CNPC inked the Heads of Agreement for pipeline deliveries of natural gas from Russia to China via the western route (Power of Siberia 2 gas pipeline). At the initial stage, 30 billion cubic meters of gas is planned to be annually delivered from Western Siberian fields.
Also in 2015, Gazprom and CNPC signed the Memorandum of Understanding for the project of pipeline gas supplies to China from the Russian Far East.
Gazprom has considerable experience in building and operating underground gas storage facilities both in Russia and abroad.

About Gazprom

Gazprom is a global energy company. Its major business lines are geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as generation and marketing of heat and electric power.

Gazprom views its mission in reliable, efficient and balanced supply of natural gas, other energy resources and their derivatives to consumers.

Gazprom holds the world’s largest natural gas reserves. The Company’s share in the global and Russian gas reserves makes up 18 and 72 per cent respectively. Gazprom accounts for 14 and 74 per cent of the global and Russian gas output accordingly. At present, the Company actively implements large-scale projects aimed at exploiting gas resources of the Yamal Peninsula, Arctic Shelf, Eastern Siberia and the Far East, as well as hydrocarbons exploration and production projects abroad.

Gazprom is a reliable supplier of gas to Russian and foreign consumers. The Company owns the world’s largest gas transmission network – the Unified Gas Supply System of Russia with the total length of over 168 thousand kilometers. Gazprom sells more than half of overall produced gas to Russian consumers and exports gas to more than 30 countries within and beyond the former Soviet Union.

About CNPC

CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a globally reputed contractor in engineering construction. With a presence in almost 70 countries, we are seeking an even greater international role. We provide energy in a profitable manner, and always attach great importance to our social and environmental responsibilities.​