The second meeting of Gazprom and China National Petroleum Corporation (CNPC) Joint Coordinating Committee (JCC) was held at Gazprom’s Bogorodskoye Reception Hall. Alexander Ananenkov, Deputy Chairman, Gazprom Management Committee, and Zhou Jiping, Senior Vice President, CNPC, co-chaired the meeting.

Gazprom – CNPC Joint Ad hoc Working Group (JAWG) co-chairmen presented their report to the Committee on the assignments completed since the initial Committee meeting held in November 2004. The Committee approved current results of preliminary review of Russian natural gas export options concerning China.

The parties conveyed information on the progress of Gazprom’s Program on setting up an integrated gas production, transmission and supply network in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asian Pacific countries, as well as potential target markets in China for Russia produced natural gas. The meeting’s participants also considered possible completion timing for Russian natural gas exports to China.

The appropriate protocol was signed at the conclusion of the meeting.

Reference:

China National Petroleum Corporation is the largest government oil and gas company in China, and is one of the major integrated oil and gas producers in the world.

CNPC was incorporated in 1998 following reorganization of the PRC Ministry of Oil Industry. Currently CNPC and its subsidiaries operate in exploration, production, transportation and storage of oil and gas, as well as in oil refining, petrochemicals, and R&D. CNPC is the largest crude oil producer and supplier. It maintains the leading position in production, refining, and sales of oil and gas in China. CNPC, including its subsidiary companies, supplies 79% of oil for the domestic market, and controls 95% of the local natural gas and 40% of petroleum products market in the PRC. It is involved in 27 overseas projects.

The Strategic Cooperation Agreement between Gazprom and CNPC was signed on October 14, 2004, in Beijing, during the Russian President Vladimir Putin’s official visit to the People’s Republic of China. The Agreement includes a wide array of cooperation issues, including research of Gazprom’s natural gas supplies options from Russia to China. The Joint Coordinating Committee was established to supervise the Agreement’s implementation. According to the Committee’s decision, the Joint Ad hoc Working Group and several other specialized working groups focused on key cooperation issues were established in order to implement the Agreement. Co-chairmen of the JAWG are Stanislav Tsygankov, Head of Gazprom’s Foreign Relations Department, and Zhang Xin, Director of Foreign Affairs Office, CNPC.

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