Moscowhosted today another meeting of the Joint Coordinating Committee (JCC) between Gazprom and China National Petroleum Corporation (CNPC).

The meeting was chaired by the JCC Co-Chairmen – Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee and Wang Dongjin, Vice President of CNPC.

The parties addressed various technical issues regarding the arrangement of future natural gas supplies from Russia to China, including the construction of underground gas storage facilities in the People's Republic of China.

In addition, the parties exchanged opinions on such subjects as personnel training and sci-tech cooperation.

The agreements were reached on furthering the interaction within the mentioned areas of cooperation.

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 the examination of the issues relative to the arrangement of natural gas supplies from Russia to China by Gazprom. 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 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 Basic Major Terms of Gas Supply from Russia to China were signed. In September 2010 in furtherance of the accords reached earlier Gazprom and CNPC inked the Extended Major Terms of Natural Gas Supply from Russia to China.

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.