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Monday, May 27, 2024

Russian energy giant announces new mega gas deal with China

The agreement was reached during the Belt and Road Forum in Beijing

Russian energy giant Gazprom and the China National Petroleum Corporation (CNPC) have signed an agreement on additional gas shipments to China, the Russian company announced on Thursday.

The deal was struck during a meeting between Gazprom CEO Aleksey Miller and CNPC Chairman of the Board of Directors Dai Houliang on the sidelines of the Belt and Road Forum for International Cooperation in Beijing.

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“During the meeting, Gazprom and CNPC signed an additional agreement to the gas purchase and sale contract via the East Route for an additional volume of Russian gas supplies to China until the end of 2023,” Gazprom wrote on its Telegram channel.

Russia supplies gas to China via the Power of Siberia pipeline, a section of the so-called East Route, under a bilateral long-term agreement between the two countries. The mega pipeline, which is expected to be completed and become fully operational by 2025, will provide China with 38 billion cubic meters (bcm) of Russian natural gas annually starting in 2024.

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Earlier, Miller revealed that Russian gas exports to China will soon reach the volumes sold to the EU before the bloc imposed sanctions.