Gazprom, CNPC sign 30-year natural gas supply contract

OAO Gazprom and China National Petroleum Corp. signed a 30-year natural gas supply contract reportedly worth $400 billion that earlier this year the two firms announced they were preparing to sign (OGJ Online, Apr. 30, 2014).

The contract signing in Shanghai by Alexey Miller, Gazprom management committee chairman, and Zhou Jiping, CNPC chairman, was in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping.

The contract stipulates that 38 billion cu m/year will be supplied from Russia to China. It includes provisions for a price formula linked to oil prices and a take-or-pay clause.

Gas will be delivered via the Power of Siberia trunk line encompassing the Yakutia and Irkutsk production centers designed for supplying gas to Russia’s Far East and China.

Gazprom’s Miller called it “the biggest contract in the entire history of the USSR and Gazprom” and that more than 1 trillion cu m will be supplied during the contract period.

Gazprom said $55 billion will be invested in the construction of production and transmission facilities in Russia.

Gazprom and CNPC in 2009 signed a framework agreement on major terms and conditions of gas supply from Russia to China, and in 2013 signed an agreement on major terms and conditions of pipeline gas supply from Russia to China via the eastern route.

Related Articles

IAGC appoints new president

09/19/2014 The board of the International Association of Geophysical Contractors has reported that Ken Wells has been named as the organization’s president.

MARKET WATCH: Crude oil futures down more than $1 in New York, London

09/19/2014 The New York Mercantile Exchange October crude oil contract lost $1.35 to $93.07/bbl on Sept. 18. The November contract declined $1.22 to $91.98/bbl.

ExxonMobil ‘winding down’ Arctic well, complying with US, EU sanctions on Russia

09/19/2014 ExxonMobil Corp. released a statement that the company is complying with all US sanctions on Russia after news reports that the operator had halted...

ExxonMobil, Linn to make second asset exchange this year

09/19/2014 ExxonMobil Corp. has agreed to trade interest in 500 net acres from South Belridge field near Bakersfield, Calif., to Linn Energy LLC, Houston, in ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected