Gazprom shipments to China significantly higher since mid-Nov based on additional agreement
MOSCOW. Dec 14 (Interfax) - Russian gas shipments to China via the Power of Siberia gas pipeline have increased since mid-November in accordance with a previously signed additional agreement, Gazprom said. In addition, as of the beginning of 2024 there will be a new increase in contract volumes to 30 bcm from 22 bcm in 2022.
On Thursday, a meeting of the Joint Coordination Committee of Gazprom and the Chinese CNPC was held in Beijing under the leadership of Deputy Chairman of the Board of Gazprom Vitaly Markelov and Vice President of CNPC Huang Yongzhang.
"It was noted that shipments of Russian gas via the eastern route - the Power of Siberia gas pipeline - are proceeding reliably. The companies are preparing for a planned increase in shipments in 2024. In addition, since mid-November of this year, shipment volumes have increased significantly in accordance with the previously signed Additional Agreement to the Gas Purchase and Sale Agreement," Gazprom said.
The report also notes that design work is underway on the gas pipeline along the Far Eastern route, including the cross-border section across the Ussuri River in the area of the cities of Dalnerechensk, Russia and Hulin, China.
The parties also discussed a promising project for gas shipments from Russia to China through Mongolia.
In addition, the meeting covered issues of interaction between the companies in the scientific and technical sphere and in the field of personnel training. Because of the meeting, the "Welded Steel Flexible Pump-Compressor Pipes. General Technical Conditions" intercorporate standard document was signed.
Gazprom and CNPC have a 30-year gas purchase and sale agreement along the eastern route (via the Power of Siberia gas pipeline) for 38 bcm of gas per year. Shipments began in December 2019. In October 2023, Gazprom and CNPC signed an additional agreement to the contract for additional volumes of Russian gas shipments to China through the end of 2023.
A long-term agreement for the purchase and sale of natural gas along the Far Eastern route was signed in February 2022. Once the project reaches full capacity, the volume of Russian pipeline gas shipments to China will increase by 10 bcm.
Gazprom began assessing the possibility of supplying up to 50 bcm of gas to China per year through Mongolia in 2020.
Gazprom and CNPC signed an Agreement in 2016 on cooperation on the mutual recognition of standards and conformity assessment results. The document provides for joint work on the creation of inter-corporate technical standards and their applications in the activities of the two companies.