Gazprom: intergovernmental deal for gas supply to China to be ready soon

Alexey Miller of Gazprom met with Zhang Gaoli, First Vice Premier of China’s State Council last week in Beijing.

“The parties addressed the progress with preparations for an Intergovernmental Agreement for Russian pipeline gas supply to China via the eastern route. It was pointed out that the document was at its final stage and could be signed in the near future,” Gazprom said in a statement.

They also discussed the next specific steps for preparing a project for gas supply via the western route. Three main documents will be inked: an intergovernmental agreement, a commercial contract and a technical agreement.

Alexey Miller also met with Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC). They addressed the project for Russian gas supply to China via the eastern route and noted that it proceeded as planned.

“During the meeting the parties extensively discussed the further negotiation schedule to sign a contract for Russian gas supply to China via the western route,” the statement said.

In addition, Alexey Miller met with Wang Yilin, Chairman of the CNOOC Board of Directors. The meeting considered the outlooks for LNG supply to China from Gazprom Group’s portfolio.

“The talks in China were held in the atmosphere of warmth, friendliness and confidence. Their results are highly important. At the meetings we outlined the new levels for interaction in the gas sector, with regard to supply volumes, long-term cooperation and new business segments.

The top priority of the current talks is the western route. The supply contract for 30 billion cubic meters of gas a year is being prepared. The Altai project is fully ready to initiate the construction. Later on, the second and third gas pipeline strings might be constructed to reach the potential output of up to 100 billion cubic meters a year.

The new areas of cooperation include joint projects in Russian and Chinese offshore oil fields, power generation projects in China as well as joint activities in third countries. Gazprom is ready to consider the possibility of pipeline gas export to China as an alternative to the Vladivostok LNG project,” said Alexey Miller.