Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, signed in Moscow a Supplementary Agreement to the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route, which had been inked by the parties on May 21, 2014.

The ceremonial exchange of the signed documents took place in the presence of Vladimir Putin, President of the Russian Federation, and Xi Jinping, President of the People’s Republic of China.

According to the Supplementary Agreement, gas supplies to China via the Power of Siberia gas pipeline will commence in December 2019.

“The signing of this document is a crucial step in the implementation of the project, a step achieved by Gazprom and CNPC thanks to clear and concerted action on both sides of the border. Our work is strictly on schedule, even ahead of schedule regarding Power of Siberia. Russian gas supplies to China will come right on time,” said Alexey Miller.

Background

- Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.
- On May 21, 2014, Gazprom and CNPC signed the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline). The 30-year Agreement provides for gas deliveries to China in the amount of 38 billion cubic meters per year, is oil-pegged and contains a take-or-pay clause.
- On May 8, 2015, Gazprom and CNPC inked the Heads of Agreement for pipeline deliveries of natural gas from Western Siberian fields to China via the western route (Power of Siberia 2 gas pipeline).
- On September 3, 2015, Gazprom and CNPC inked the Memorandum of Understanding for the project of pipeline gas supplies to China from Russia’s Far East.
- On June 25, 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China.
- On November 7, 2016, Gazprom and CNPC signed the Memorandum to explore the opportunities for cooperation in the NGV sector.

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.

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.