Russia and China sign gas memo

China

BEIJING, September 3, 2015 – The Russian company Gazprom signed a memorandum of understanding with the state-controlled China National Petroleum Corporation on Thursday to increase gas flow from Russia’s far eastern regions to China. The heads of the corporations, Alexey Miller and Wang Yilin, announced their intent to study and develop new routes for gas trade between the two countries.

“The study will identify key technical and commercial parameters of the project, including the amount and timing of deliveries, and the point of transfer gas,” said a Gazprom spokesperson at the signing.

No specific contractual terms were discussed, nor was the volume of gas to be sent.

Russian and Chinese energy corporations made a flurry of deals on Thursday, overseen by their country’s presidents, Vladimir Putin and Xi Linping, aiming to deepen economic ties. State oil companies Rosneft and Sinopec signed a deal to jointly develop oil and gasfields in Siberia, and Novatek gave the Beijing-based investment group Silk Road Fund a 9.9-percent stake of the Yamal LNG project.

Over the past year, Gazprom and the China National Petroleum Corporation signed two additional deals to send gas to China via an eastern and a western route.

Image credit RIA Novosti and Gazprom

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