Today in the Kremlin Alexey Miller, Chairman of the Gazprom Management Committee and Zhou Jiping, CNPC President signed in the presence of Vladimir Putin, President of the Russian Federation and Xi Jinping, President the People's Republic of China a Memorandum of Understanding on the cooperation between the two companies within the project for pipeline gas supplies to China via the eastern route.

“The signed document is of long-term strategic nature, it determines the parameters of Russian natural gas supplies to China via the eastern route and establishes the framework for a 30-year contract for gas supplies from Russia to China,” said Alexey Miller.

Background

CNPC is the largest state-owned petroleum company in China (the 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.