Russian Gas to China Not to be Linked to Henry Hub

Gazprom’s Chairman Alexey Miller and Zhou Jiping, President of China National Petroleum Corporation (CNPC) met in Moscow to addressed issues related to the conclusion of a long-term contract for Russian gas supplies to China.

At the meeting Miller said that the price of gas to be supplied to China won't be linked to the US spot market prices. The two parties are likely ink the gas supply deal before the end of this year.

Gazprom and CNPC signed the Agreement of Strategic Cooperation on October 14, 2004. Among other things, the agreement stipulates examining issues in respect of natural gas deliveries by Gazprom from Russia to China.

In October 2009 Gazprom and CNPC inked the Framework Agreement on the major terms and conditions of natural gas supplies from Russia to China. In September 2010 the detailed Heads of Agreement on gas supplies from Russia to China was signed.

In March 2013 Gazprom and CNPC signed the Memorandum of Understanding for cooperation between the two companies in pipeline gas deliveries to China via the eastern route.