The Gazprom Headquarters hosted a working meeting between Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee and Wang Dongjin, Vice President of the China National Petroleum Corporation (CNPC). The parties addressed the progress in implementing the Framework Agreement on major terms and conditions for natural gas supply from Russia to China within the Joint Coordinating Committee between Gazprom and CNPC.

The negotiating group led by Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, held another round of commercial talks with CNPC’s delegation relevant to arranging natural gas supplies to China. The parties discussed the actions aimed at executing the project for natural gas supply from Russia to China via the “western” corridor including the pricing issue and technical aspects of supplies arrangement.

Background:

China National Petroleum Corporation (CNPC) is the largest state-owned petroleum corporation of China (the Chinese Government holds a 100 per cent stake) and is one of the leading integrated oil and gas production companies of the world.

Gazprom and CNPC signed the Agreement of Strategic Cooperation on October 14, 2004. The Agreement covers a wide spectrum of joint businesses including scrupulous discussion of the issues related to the arrangement of Russian natural gas deliveries to China by Gazprom. The opportunities for implementing joint gas processing and gas chemical projects in eastern Russia and in third countries are being studied.

On October 13, 2009 Gazprom and CNPC signed the Framework Agreement on major terms and conditions for natural gas supply from Russia to China.

The State Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program) was approved by the September 2007 Order of the Russian Federation Industry and Energy Ministry. Gazprom was appointed by the Russian Government as the Program execution coordinator.