The Gazprom headquarters hosted today a working meeting of Alexey Miller, Chairman of the Company's Management Committee, Zhang Ping, Chairman of the Chinese National Development and Reform Commission and Zhou Jiping, Vice President of China National Petroleum Corporation (CNPC).

The negotiating parties addressed various aspects of the bilateral cooperation in the petroleum sector placing an emphasis on terms and conditions for Russian gas supplies (both via pipelines and in liquefied  form) to China.

The meeting paid special attention to the results of the design and survey operations for the Altai gas pipeline. It was highlighted that this gas transmission route would meet the growing energy demand in CNPC.

“We made a step forward today,” said Alexey Miller at the end of the meeting.

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 supplies 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 Basic Major Terms of Gas Supply from Russia to China were signed.

The Altai project envisages building a gas pipeline to supply natural gas from fields in Western Siberia to China via the western part of the Russian-Chinese border. The gas pipeline route will cover six Russian constituents: the Republic of Altai, the Altai Territory, the Novosibirsk Region, the Tomsk Region, the Yamal-Nenets Autonomous Area and the Khanty-Mansiysk Autonomous Area – Yugra.

The Altai gas pipeline construction will start only after the gas purchase and sale agreement is inked with the Chinese party.