On December 22–27 the Gazprom’s delegation, led by Alexander Medvedev, held in China the year’s final round of commercial talks with the China National Petroleum Corporation (CNPC) relevant to arranging Russian gas supplies to China via the western and eastern routes.

Based on the negotiation results and in compliance with the previously reached agreements between Gazprom export and a subsidiary of CNPC, PetroChina International, an Agreement was signed on major terms and conditions for natural gas supplies from Russia to China.

The Agreement defines the basic commercial and technical parameters of Russian gas supplies to Chinese consumers.

The parties also agreed on furthering active cooperation in the first quarter of 2010 to come to understanding on other terms and conditions that would subsequently lay the foundation for entering into contracts on gas supply from Russia to the People’s Republic of China via both routes.

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.