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    Gazprom, CNPC reach technical deal on Far East gas pipe

Summary

The two companies signed a long-term gas supply deal in February underpinning the construction of a pipeline from the Russian Far East into China.

by: NGW

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Gazprom, CNPC reach technical deal on Far East gas pipe

Russia's Gazprom and China's CNPC have signed a "technical agreement" on establishing Russian gas supply to China in the Far East, Gazprom said on its Telegram channel on June 16.

The two companies signed a long-term gas supply deal in February underpinning the construction of a pipeline from the Russian Far East into China. The agreement covers the annual delivery of 10bn m3 of gas over a 30-year period, with the supply expected to come from the South-Kirinskoye field off the coast of Sakhalin Island.

"The document contains the main technical parameters of the cross-border section of the pipeline, including the underwater crossing of the Ussuri border river, as well as the physical and chemical parameters of the gas intended for supply," Gazprom said of the latest agreement, which was reached at the St Petersburg International Economic Forum.

China already receives pipeline Russian gas via the Power of Siberia pipeline, opened in late 2019. That project was underpinned by a 2014 gas contract agreed by CNPC and Gazprom in 2014 that covers 38bn m3/yr of gas over three decades.