Gazprom preparing to ramp up gas supplies to China, reminds about importance for weathering winter
MOSCOW. Nov 12 (Interfax) - Gazprom is currently preparing to ramp up gas exports further via the Power of Siberia pipeline in line with the company's agreement to bring daily supplies to the maximum contract level ahead of schedule.
Russia's supplies of pipeline gas to China should exceed Gazprom's contractual obligations in 2024, Gazprom said following the meeting between CEO and management board chairman Alexei Miller and China National Petroleum Corporation (CNPC) Vice President Huang Yongzhang.
The meeting took place in St. Petersburg at Gazprom's headquarters in the Lakhta Center, according to a photo provided for the statement.
Gazprom will become the largest supplier of pipeline gas to China, far surpassing Turkmenistan, following yet another boost in daily supplies. Russia has also long been the leader in gas supplies to China in terms of the volume including LNG exports.
Gazprom said that, "The high reliability of supplies via the eastern route along the Power of Siberia gas pipeline allows for China to weather the heating season confidently."
Work continues on the supply project via the Far Eastern route "in strict accordance with the schedule agreed by the companies," Gazprom said.
Moreover, the parties discussed matters on implementing promising collaboration projects in the gas sector.
A meeting of the Joint Coordinating Committee between Gazprom and CNPC was also held under the leadership of Gazprom Deputy Management Board Chairman Vitaly Markelov and Huang Yongzhang on Monday.
In addition to gas supplies, the companies are developing cooperation in a wide range of areas. In particular, in 2024, a new, expanded program of scientific and technical cooperation between Gazprom and CNPC was signed for 2024-2028. For the first time, the program is designed for a five-year period. This year, the companies also continued the practice of exchanging advanced methods of ensuring safety at production facilities, maintaining the professional health and longevity of workers, Gazprom said.
Gazprom and CNPC have a 30-year gas purchase and sale agreement via the eastern route along the Power of Siberia gas pipeline, totaling 38 billion cubic meters of gas per year. Supplies began in December 2019.
In September 2024, an additional agreement to the gas sale and purchase agreement via the eastern route was signed. The document implies additional supplies in December 2024, thereby resulting in bringing daily gas supplies to China via the Power of Siberia pipeline to the maximum contract level ahead of schedule versus the previously planned timeframe in early 2025.
In February 2022, a long-term agreement for the sale and purchase of natural gas via the Far Eastern route was signed. After the project reaches full capacity, the volume of Russian pipeline gas supplied to China will increase by 10 bcm to 48 bcm per year. In October 2024, a coordination agreement was signed particularly regulating the parties' interaction to operate adjacent gas pipeline systems in order to implement future supplies of Russian gas to China.
