OREANDA-NEWS. March 16, 2011. Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Wang Dongjin, Vice President of China National Petroleum Corporation (CNPC) held another round of commercial negotiations in Moscow.

The parties discussed the terms and conditions for Russian natural gas delivery to People's Republic of China via the western route (Altai project).

Alexander Medvedev and Wang Dongjin noted the progress in coordinating the gas pipeline specifications.

Consideration was given to the project funding and commercial parameters of the forthcoming delivery of Russian natural gas to the Chinese market, scheduled to start in 2015.
Background

CNPC is the largest state-owned petroleum company in China (the Government holds a 100 per cent stake) and is one of the world's leading integrated oil and gas production companies.

Gazprom and CNPC signed the Agreement of Strategic Cooperation on October 14, 2004. Among other things, the Agreement covers examination of the issues relative to the arrangement of natural gas delivery from Russia to China by Gazprom. The opportunities are also being explored for joint gas processing and gas chemical projects in eastern Russia and in third countries.

In June 2009 the Russian Government and their Chinese counterparts signed the Memorandum of Understanding for cooperation in the natural gas sector.

In October 2009 Gazprom and CNPC inked the Framework Agreement on major terms and conditions for natural gas supply from Russia to China. In December 2009 the Basic Major Terms of Gas Supply from Russia to China were signed.

In March 2010 Gazprom and CNPC entered into the Agreement on developing the feasibility study for gas processing and gas chemical projects.