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Russian-Chinese cooperation

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Hydrocarbon Engineering,

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, took place in Beijing. The parties addressed current issues related to strategic cooperation, noting in particular that the project for Russian gas deliveries to China via the eastern route was right on schedule. On 11 May 2017, a temporary two-way checkpoint had become operational on the Russian-Chinese border for the construction of the Power of Siberia gas pipeline’s crossing under the Amur River. The parties began to discuss the exact starting dates for gas supplies via Power of Siberia under the existing contract.

The parties touched on the project for gas deliveries from Russia’s Far East in the context of the commercial negotiations launched with the view of reaching an agreement on the supply terms by late 2017.

Following the meeting, three contracts were signed in the presence of Alexey Miller and Wang Yilin to conduct pre-development surveys for the purposes of creating underground gas storage (UGS) facilities within the Shenzhen 2–1 gas deposit (Heilongjiang province), Baiju aquifers (Jiangsu province), and Chuzhou salt caverns (Jiangsu province). The documents had been prepared as a follow-up to the agreement inked in February 2017 between Gazprom and CNPC to conduct geotechnical surveys for the creation of UGS facilities.

The Langfang branch of the PetroChina Research Institute of Petroleum Exploration and Development acts as the customer for the pre-development surveys. The contractor for the first two contracts is Gazprom VNIIGAZ, while Gazprom Geotechnology acts as the contractor for the third contract. Pursuant to the contracts, the Russian companies are to develop key technological solutions for creating and operating gas storage facilities.

As part of the effort to develop the Europe – Western China international transport route, Alexey Miller, Wang Yilin, Sergey Kelbakh, Chairman of the Board of the Russian Highways State Company, and Liu Qitao, Chairman of the Board of China Communications Construction Company Ltd., inked a Memorandum of Cooperation. Developed at the initiative of Gazprom, the document is aimed at fostering cooperation between the companies in developing road infrastructure and promoting the use of LNG as a vehicle fuel along the aforementioned route.

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