Russia and China signed the biggest contract in the entire history of Gazprom

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Alexei Miller, Chairman of the Company’s Management Committee and Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC) signed a contract to supply pipeline gas from Russia to China via the eastern route. The parties signed the document in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping in Shanghai.
The 30-year contract stipulates that 38 billion cubic meters of gas will be annually supplied to China. The mutually beneficial contract contains such major provisions as the price formula linked to oil prices and the ‘take-or-pay’ clause.
“Russia and China have signed the biggest contract in the entire history of the USSR and Gazprom – over 1 trillion cubic meters of gas will be supplied during a whole contractual period. Russian gas will be sold at a brand new market with a huge potential.
The arrangement of Russian pipeline gas supplies is the biggest investment project on a global scale. USD 55 billion will be invested in the construction of production and transmission facilities in Russia. An extensive gas infrastructure network will be set up in Russia’s East, which will drive the local economy forward. Great impetus will be given to entire economic sectors, namely metallurgy, pipe and machine building,” said Alexey Miller.