Gazprom brings daily gas exports to China via Power of Siberia pipeline to maximum contractual level ahead of schedule
RELEASE
Release
In line with the request of the Chinese party and the supplementary agreement previously signed, Gazprom ensured the increase of Russian natural gas exports to China via the Power of Siberia gas pipeline; such increase was provided by the Company ahead of schedule. Starting from December 1, the daily gas supplies are going at the maximum contractual level.
The supplies were increased one month earlier than had initially been scheduled in the bilateral long-term Sales and Purchase Agreement for gas to be supplied via the eastern route which is in effect between Gazprom and CNPC.
The overall volume of gas supplies delivered via Power of Siberia throughout 2024 will be more that their contractual volume initially stipulated for Gazprom for this year.
“For five years, Gazprom has been delivering Russian pipeline gas to China via Power of Siberia. The supplies are performed in a reliable manner and in the volumes that correspond to the needs of our partners, even when such volumes are above the contractual ones stipulated for Gazprom. We see that Russian gas is in demand in the growing Chinese market and we see that Russian gas plays an important role in ensuring stable energy supplies for China's economy.
Long-term agreements between Gazprom and CNPC strengthen the good neighborly relations between our countries. I am confident that this mutually beneficial strategic partnership in the gas sector will continue its dynamic momentum for the benefit of Russia and China,” said Alexey Miller, Chairman of the Gazprom Management Committee.
Background
Gazprom's main partner in China is CNPC, a state-owned oil and gas corporation.
In May 2014, Gazprom and CNPC signed 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), which is the largest contract of this kind ever signed in the history of the global gas industry. The aggregate amount of gas to be supplied within the entire validity period of the Sales and Purchase Agreement is above 1 trillion cubic meters of gas.
On December 2, 2019, the ceremony marking the start of the first-ever pipeline supplies of Russian gas to China was held with the participation of Vladimir Putin, President of the Russian Federation, and Xi Jinping, President of the PRC.
In line with the Sales and Purchase Agreement, Gazprom was consistently stepping up the volumes of gas supplies via the Power of Siberia pipeline: 4.1 billion cubic meters in 2020; 10.39 billion cubic meters in 2021; 15.4 billion cubic meters in 2022; and 22.73 billion cubic meters in 2023. It should be noted that the volumes of gas delivered were regularly above the annual amounts of supplies stipulated for Gazprom by the Agreement.
In September 2024, Gazprom and CNPC signed the Supplementary Agreement to the Sales and Purchase Agreement for gas to be supplied via the eastern route. The document envisages additional gas supplies in December 2024, which means the increase of the daily exports of gas to China via the Power of Siberia pipeline to the maximum contractual level ahead of schedule (not in early 2025, as had been previously planned).