Gazprom, CNPC Sign Deal on Supplying Russian Gas to China

Gazprom CEO Alexei Miller at an annual general meeting of the company's shareholders in Moscow. Photo: Reuters

Gazprom and China National Petroleum Corporation (CNPC) have signed a technical agreement on supplying gas to China, the Russian energy giant announced on Thursday.

Gazprom deputy chairman Vitaly Markelov and CNPC vice-president Huang Yongzhang signed the deal at the St Petersburg International Economic Forum.

“The document contains the main technical parameters for the cross-border section of the gas pipeline,” Gazprom said.

It sets out how the pipeline crosses the Ussuri river on the China-Russia border, the company added. The MoU also “explains the physical and chemical parameters of the gas intended for supply”.

The Russian company recently issued a five-year plan for large-scale work on gasification of the Far East.

In the Sakhalin Region, Gazprom is linking the Yuzhnaya gas distribution station and a gas distribution pipeline to redistribute the load more evenly and reliably.

In 2016, CNPC chairman Wang Yilin and Gazprom chairman Alexei Miller signed a memorandum of understanding (MoU) in the presence of Chinese President Xi Jinping and Russian President Vladimir Putin.

According to the MoU, CNPC and its Russian ally will broaden their cooperation, push ahead with underground gas storage and gas power generation projects, and strengthen their strategic partnership.

Reuters, with additional editing by George Russell

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.