Russian pipeline natural gas giant Gazprom and the Chinese energy major, China National Petroleum Corp. (CNPC), have signed a new long-term Sales and Purchase Agreement for additional gas to be supplied in the Far East via Mongolia.
“The signing of this document is an important step towards further strengthening the mutually beneficial cooperation between Russia and China in the gas sector,” said Gazprom.
“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 metres, totalling 48 Bcm per year,” added the company.
Gazprom, based in Saint Petersburg, said these deliveries to China include those via the existing “Power of Siberia” gas trunkline.
“This is the second contract to be signed for Russian gas supplies to China, and it is indicative of the exceptionally strong mutual trust and partnership between our countries and companies,” said Gazprom Chief Executive Alexey Miller.
“Our Chinese partners from CNPC have already seen for themselves that Gazprom is a reliable gas supplier,” stated Miller.
Gazprom stated that CNPC, a state-owned oil and gas company, had emerged as Gazprom’s main partner in China.
Gazprom and CNPC signed their 30-year Sales and Purchase Agreement for 38 Bcm per annum in 2014 via the “Power of Siberia” gas pipeline.
The actual start of deliveries to the Chinese was on the 2nd of December 2019 when a ceremony was held to mark the event.
Gazprom explained that in January 2022, a feasibility study was completed for the Soyuz Vostok gas trunkline construction project.
The Soyuz Vostok pipeline will stretch for 963 kilometres (598 miles) on Mongolian territory and will also include five compressor stations.
