Russia's multinational energy company Gazprom and China National Petroleum Corporation (CNPC) signed a long-term sales and purchase agreement for natural gas to be supplied through the Far Eastern route.

The signing of this document is seen as an important step towards further strengthening the mutually beneficial cooperation between Russia and China in the gas sector. Upon reaching full capacity, the amount of Russian pipeline gas supplies to China is going to grow by 10 billion cubic meters, totaling 48 billion cubic meters per year (including deliveries via the Power of Siberia gas trunkline).

This is a second contract to be signed for Russian gas supplies to China, which reflects the strong mutual trust and partnership between the two countries and companies.

In 2014, Gazprom and CNPC signed the 30-year sales and purchase agreement for 38 billion cubic meters of gas per year to be supplied via the eastern route (Power of Siberia gas pipeline). The ceremony marking the start of the first-ever pipeline supplies of Russian gas to China took place on December 2, 2019.

In January 2022, the feasibility study was completed for the Soyuz Vostok gas trunkline construction project. The trunkline will become an extension of Russia's Power of Siberia 2 gas pipeline in Mongolian territory and will make it possible to supply up to 50 billion cubic meters of gas per year to China.

The natural gas supply decision by CNPC comes after China’s massive coal shortage last year.

According to preliminary data, Gazprom produced 47.4 billion cubic meters of gas in January 2022, which is 0.5 billion cubic meters (or 1 per cent) more than in the same period of last year.