18 Nov 2022 15:36

Russia, China preparing to sign intergovernmental agreement on supplying gas from Far East

MOSCOW. Nov 18 (Interfax) - Russia and China are preparing to sign an intergovernmental agreement on a project to supply gas to China from Russia's Far East, Deputy Prime Minister Alexander Novak said during a meeting of the intergovernmental commission on energy.

As previously reported, Gazprom and China National Petroleum Corporation (CNPC) on February 4, 2022, signed a long-term contract for the sale and purchase of natural gas via Russia's Far East route.

"An agreement has been signed between Gazprom and CNPC on supplying another 10 billion cubic meters of gas via the Far East route. Going forward, we must sign an intergovernmental agreement. This is the project that will be in the future," Novak said.

Novak recalled that, "Negotiations are ongoing on implementing another major project for supplies through Power of Siberia 2. The gas will transit Mongolia to China. This is a new, landmark project with capacity up to 50 bcm of gas."

"We are transferring to mutual settlements in national currencies in both rubles and in yuan. As an example, gas supplies today between Gazprom and China are conducted on a parity basis. Oil and petroleum products are also transferring to national currencies," he added.

Novak said that, "Trade turnover with China in the energy sector has increased substantially" by about 64% in monetary terms, and by about 10% in physical terms, in the supply of oil, gas, coal, and electricity.

"We are focused on future development," he added.