Gazprom : continuing to supply gas via Power of Siberia in excess of planned amounts

Background

Gazprom's main partner in China is CNPC, a state-owned oil and gas company.

Power of Siberia is the largest gas transmission system in Russia's East. The trunkline supplies gas to consumers in Russia's Far East and China. It has an export capacity of 38 billion cubic meters of gas per year.

On May 21, 2014, Gazprom and CNPC signed the 30-year Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline).

In 2015, Gazprom and CNPC inked the Heads of Agreement for pipeline deliveries of natural gas from Western Siberian fields to China via the western route.

In 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China.

In December 2017, Gazprom and CNPC entered into the Heads of Agreement for natural gas to be supplied from Russia's Far East to China.

In 2020, Gazprom started to assess the possibility of gas supplies across Mongolia in the amount of up to 50 billion cubic meters of gas per year.

In December 2019, Gazprom and the Government of Mongolia signed a Memorandum of Understanding. The document provides for a joint assessment of the feasibility of the project for pipeline gas supplies from Russia to China across Mongolia. In August 2020, a Memorandum of Intent was signed to set up a special-purpose company. The company will be established in Mongolia with the purpose of conducting a feasibility study for a gas trunkline construction and operation project.