Gazprom, CNPC Sign MoU Regarding Underground Gas Storage Facilities in China

Gazprom and China National Petroleum Corporation (CNPC) on Saturday signed a MoU on joint venture for underground storage facilities in China, TASS reported.

The document was signed in Beijing by Gazprom CEO Alexei Miller and CNPC CEO Wang Yilin.

The two parties will study prospects of creating underground reservoirs to store natural gas on China’s territory. An analysis and assessment of geological, technological and economic conditions of creating gas storage facilities in Daqing, Jiangsu and Baiju will be carried out, TASS said citing a statement by Gazprom.

As per the MoU, the sides will study ways to build gas-fired power plants.

"The Russian-Chinese dialogue in the gas sphere encompasses new directions. Our cooperation in the sphere of underground storage and power generation will contribute to further deepening cooperation between companies and significant improvement of environmental situation in China," Miller said.

On Friday, Gazprom and CNPC held talks on Russian gas supplies via the western route. In 2015, Gazprom and CNPC inked initial agreement for pipeline deliveries of natural gas from Russia to China via the western route (Power of Siberia 2 gas pipeline). At the initial stage, 30 billion cubic meters of gas is planned to be annually delivered from Western Siberian fields.