Gazprom and CNPC review results of joint efforts performed in 2021
RELEASE
Release
The meeting of the Joint Coordinating Committee (JCC) of Gazprom and CNPC moderated by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Huang Yongzhang, Vice President of CNPC, took place today via a video link.
The meeting participants discussed the results of their joint work performed in 2021.
The parties highlighted the reliability of natural gas supplies via the Power of Siberia gas pipeline. Specifically, the daily amount of gas exports was significantly increased in November and December under the mutually beneficial arrangements between Gazprom and CNPC as compared with the schedule for 2021 that had been approved earlier.
Developing gas resources and shaping gas transmission system in eastern Russia
Gazprom continues its preparations for further planned increase of gas exports to be performed in 2022 in line with the supply expansion dynamics envisaged in the contract.
The meeting also touched upon issues pertaining to the cooperation between the companies in the underground gas storage, sci-tech, and oil sectors.
In addition, Gazprom informed its Chinese colleagues about the progress of the feasibility study regarding the construction project for the Soyuz Vostok gas pipeline to supply Russian gas to China across Mongolia.
Background
Gazprom's main partner in China is CNPC, a state-owned oil and gas company.
In 2014, Gazprom and CNPC signed the 30-year Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline) in the amount of 38 billion cubic meters per year. The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019.
In 2016, the Memorandum of Understanding on underground gas storage and gas-fired power generation in China was signed.
In 2020, Gazprom started to assess the possibility of supplying gas to China across Mongolia in the amount of up to 50 billion cubic meters of gas per year.
In April 2021, the feasibility analysis regarding the construction project for the Soyuz Vostok gas trunkline was approved. The trunkline will become an extension of Russia's Power of Siberia 2 gas pipeline in Mongolian territory. In the course of the feasibility analysis, the basic technical and technological parameters of the project were established. These include the optimal route for the gas pipeline in Mongolian territory, the pipeline's length and diameter, the working pressure, and the number of compressor stations.
The feasibility study regarding the construction project for the Soyuz Vostok gas trunkline includes a detailed breakdown of the associated investment and operating costs. The study is being prepared by the Gazoprovod Soyuz Vostok special-purpose vehicle.