Gazprom and CNPC discuss joint work planned for 2024
RELEASE
Release
The meeting of the Joint Coordinating Committee (JCC) of Gazprom and China's CNPC moderated by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Huang Yongzhang, Vice President of CNPC, took place today in Beijing.
The meeting participants reviewed the results of their joint activities for 2023 and discussed the plans regarding key areas of cooperation for the next year.
It was noted that Russian gas supplies via the eastern route, i.e. the Power of Siberia gas pipeline, are carried out in a reliable manner. The companies are preparing for the increase of these supplies which is planned for 2024. Apart from that, a significant increase in the volumes of the gas supplies has already been provided since mid-November this year in line with the previously signed Supplementary Agreement to the relevant Sales and Purchase Agreement.
Design development works are in progress for the gas pipeline of the Far Eastern route, including the trans-border section to cross the Ussuri River in the vicinity of the Dalnerechensk town (Russia) and the Hulin city (China).
The parties also discussed the prospective project for gas supplies from Russia to China across Mongolia.
In addition, the meeting addressed the matters pertaining to the collaboration between the companies in R&D and personnel training.
At the end of the meeting, the parties signed the intercorporate technical standard “Welded Flexible Steel Pipes for Pumps & Compressors. General Specifications.”
Background
Gazprom's main partner in China is CNPC, a state-owned oil and gas company.
The 30-year Sales and Purchase Agreement for 38 billion cubic meters of gas per year to be supplied via the eastern route (Power of Siberia gas pipeline) is in force between Gazprom and CNPC. The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019. In October 2023, Gazprom and CNPC signed the Supplementary Agreement to said Sales and Purchase Agreement. The Supplementary Agreement provides for an additional volume of Russian gas to be delivered to China until the end of 2023.
The long-term Sales and Purchase Agreement for natural gas to be supplied via the Far Eastern route was signed in February 2022. As soon as the project reaches its full capacity, the amount of Russian pipeline gas supplies to China is going to grow by 10 billion cubic meters, totaling 48 billion cubic meters per year.
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 2016, Gazprom and CNPC signed the Agreement to cooperate in the field of mutual recognition of standards and conformity assessment results. The document provides for the joint work on the creation of intercorporate technical standards and their use in the activities of the companies.