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Gazprom and CNPC sign pipeline gas supply agreement

09th September 2013

The deal outlines enhanced terms for the supply of gas from Russia to China via the eastern route

A Russian gas pipeline
The agreement outlines terms such as export volume, gas delivery point and other conditions of gas offtake.

Russian gas giant Gazprom and China National Petroleum Corporation (CNPC) have signed an agreement outlining major terms and conditions for the supply of gas via the eastern pipeline route from Russia to China.

 

The agreement outlines terms such as export volume, gas delivery point and other conditions of gas offtake.

 

The agreement between the companies from the two BRIC nations paves the way for a final deal with the only roadblock being a price. In a briefing Dmitry Peskov, a spokesperson for president Vladimir Putin, who was present at the signing of the agreement, said: "Parameters were agreed, so it's only left to agree on the price. Hope it will happen soon." 

 

There has been pressure from Gazprom to venture into the Chinese market.  Rivals Novatek have agreed deals to supply China with gas. There has also been pressure towards Chinese companies to help meet the country’s growing energy demands.

 

After the signing, Alexey Miller, chairman of the Gazprom Management Committee told reporters: ‘’Both parties stressed the long-term strategic nature of our partnership. The fact that the major terms and conditions were signed during the G20 summit indicates the parties' aspiration to successfully end the negotiations and sign the contract before the end of 2013.’’

 

Gazprom has said it aims to supply China with 38 billion cubic metres (bcm) of natural gas a year from its field in East Siberia as well as supply Europe with 152 bcm in 2013.