Gazprom, CNPC, and PipeChina Ink Major Pipeline Deal to Supply More Russian Gas to China

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Gazprom, CNPC, and PipeChina Ink Major Pipeline Deal to Supply More Russian Gas to China

Flags of China and Russia (© Shutterstock/Vitalii Vodolazskyi)
Flags of China and Russia (© Shutterstock/Vitalii Vodolazskyi)

Russian energy giant Gazprom has signed an agreement with two Chinese companies to develop clean energy projects, marking a significant step in expanding bilateral cooperation in the sector.

As reported by KBC Digital, the agreement signed by the Russian gas giant between China National Petroleum Corporation (CNPC) and China Oil & Gas Pipeline Network Corporation (PipeChina) will allow the energy majors to collaborate on clean energy development projects.

The agreement, signed in St. Petersburg, outlines the parties' cooperation in designing and constructing a pipeline section in the Far East to transport Russian gas to China. The trans-border section will cross the Ussuri River near Dalnerechensk, Russia, and Hulin, China.

Alexey Miller, Chairman of the Gazprom Management Committee, hailed the agreement as a significant step forward in strengthening energy ties between Russia and China.

"The trans-border section is a crucial component of the project to deliver gas supplies from Russia to China via the Far Eastern route," Miller stated.

Gazprom and CNPC, China's state-owned oil and gas company, have a long-standing partnership.

"China and Russia share strong complementarities in the energy sector, offering ample opportunities for collaboration," remarked Lin Boqiang, Director of the China Center for Energy Economics Research at Xiamen University.

"This latest agreement will further expand avenues for Russian gas imports into China."

The agreement builds upon the 30-year Sales and Purchase Agreement signed in 2014, which stipulated the delivery of 38 billion cubic meters of gas annually via the eastern route (Power of Siberia gas pipeline). Gas supplies commenced through the Power of Siberia pipeline in December 2019, marking a historic milestone in Russia-China energy cooperation.

Currently, China and Russia utilize a single land-based natural gas pipeline, the China-Russia east-route natural gas pipeline. The long-term Sales and Purchase Agreement for natural gas transportation via the Far Eastern route was finalized in February 2022.

Upon completion, the project will increase Russian pipeline gas deliveries to China by 10 billion cubic meters, reaching a total of 48 billion cubic meters annually.

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