Russia’s Gazprom, CNPC ink deal to launch another gas supply route

BEIJING, Nov 10 (PRIME) -- Russian gas giant Gazprom and China’s CNPC have signed a framework agreement on gas supplies via the western route, Gazprom said in a statement on November 9.

The agreement will create conditions for signing of a gas purchase deal in the future, Gazprom said.

The document includes the amount and schedule of supplies, the level of take-or-pay purchases and the location of the point of gas handover. Under the new deal, 30 billion cubic meters of gas will be sent via the route connecting fields in West Siberia with northwestern China through the yet-to-be-built Altai pipeline.

In May, Gazprom signed a U.S. $400 billion 30-year contract with CNPC to supply 38 billion cubic meters of gas per year to China via the eastern route through the Sila Sibiri pipeline, also not built yet.

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