Gazprom, CNPC Ink Power of Siberia Gas Pipeline Deal

Alexey Miller, Chairman of the Gazprom Management Committee and Wang Yilin, Chairman of the Board of Directors of CNPC signed today in Beijing an Agreement to design and construct the cross-border section of the Power of Siberia gas pipeline, including its submerged crossing under the Amur River. Besides, a Memorandum of Understanding in the oil sector was entered into by Gazprom Neft and CNPC.

The documents were signed in the presence of Russian Prime Minister Dmitry Medvedev and Li Keqiang, Premier of the State Council of China.

The Agreement on design and construction of the cross-border section of the Power of Siberia gas pipeline, including the submerged crossing under the Amur River, also sets the procedure of technical decision making, engineering and construction of the section. Special attention is paid to the submerged crossing under Amur. The document was signed within the Sales and Purchase Agreement for the Russian gas supply to China via the eastern route.

The three-year Memorandum of Understanding in the oil sector stipulates the joint actions in exploration and production of oil reserves in Russia (including the Arctic shelf), China and third countries, as well as refining and sales of oil and its final products. The Memorandum envisages the cooperation in procurement of equipment and technologies for exploration, production and processing of hydrocarbon feedstock as well as joint fundraising campaigns for the future partnership.