OREANDA-NEWS. September 26, 2011. Alma-Ata hosted another round of commercial negotiations between Gazprom and China National Petroleum Corporation (CNPC).

Gazprom's delegation was led by Alexander Medvedev, Deputy Chairman of the Company's Management Committee, while Wang Dongjin, Vice President of CNPC headed the Chinese delegation.

During the meeting the parties updated the mutual business proposals on terms and conditions for natural gas supply from Russia to China.
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 Governments of Russia and China 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.