Led by Alexey Miller, Chairman of the Company's Management Committee, a Gazprom delegation paid today a visit to the People's Republic of China.

Beijinghosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Jiang Jiemin, Chairman of the Board of Directors of China National Petroleum Corporation. Taking part in the meeting were Zhou Jiping, CNPC President, Wang Dongjin, CNPC Vice President, Vitaly Markelov and Alexander Medvedev, Deputy Chairmen of the Gazprom Management Committee.

The parties addressed a wide spectrum of issues surrounding the companies' cooperation in the gas sector. Special focus was laid on key commercial and technical parameters of pipeline gas supplies to the PRC market, particularly, from the Power of Siberia gas pipeline. It was noted that joint efforts had been ramped up to sign a contract for Russian gas supply to China in 2013.

In addition, the meeting participants exchanged views regarding deeper cooperation between the companies, underground gas storage in China and LNG supplies in the framework of the Vladivostok-LNG project.

Background

CNPC is the largest state-owned petroleum company in China (Government holds a 100 per cent stake) and is one of the world's leading integrated oil and gas production companies.

Gazprom and CNPC signed the Agreement of Strategic Cooperation on October 14, 2004. Among other things, the Agreement covers examination of the issues relative to the arrangement of natural gas delivery from Russia to China by Gazprom. The opportunities are also being explored for joint gas processing and gas chemical projects in eastern Russia and in third countries. The Joint Coordinating Committee was set up to supervise the Agreement implementation. The Committee resolved to set up the Joint Working Group to ensure day-to-day execution of the Agreement in parallel with working groups for major joint businesses.

In October 2009 Gazprom and CNPC inked the Framework Agreement on major terms and conditions for natural gas supply from Russia to China. In December 2009 the Heads of Agreement on Gas Supply from Russia to China were signed.

Currently, Gazprom and CNPC are negotiating the commercial parameters of Russian gas supply projects envisaging the annual export of about 68 billion cubic meters of gas to the People's Republic of China.