Gazprom, CNPC win Siberia Pipeline Construction Deal
Gazprom and CNPC sign EPC contract to construct underwater crossing of Power of Siberia.
Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, today signed on the sidelines of the G20 summit in Hangzhou, China, an EPC contract to construct a crossing under the Amur River within the cross-border section of the Power of Siberia gas pipeline.
According to the contract, the crossing will be built using shield tunneling methods. China Petroleum Pipeline, CNPC’s pipe-building subsidiary, is the contractor for the project.
CNPC is China’s state-owned oil and gas company and one of the world’s leading integrated energy companies.
In 2014, Gazprom and CNPC signed the Sales and Purchase Agreement for gas to be supplied via the eastern route (Power of Siberia gas pipeline). The 30-year Agreement provides for Russian gas deliveries to China in the amount of 38 billion cubic meters per year.
An EPC (engineering, procurement, and construction) contract is a type of contract in the construction industry that provides for the delivery of engineering, equipment and materials procurement, and construction services.
Gazprom is a global energy company focused on geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, as well as generation and marketing of heat and electric power.
They are the only producer and exporter of liquefied natural gas (LNG) in Russia. The Company is successfully expanding its LNG sales within the existing Sakhalin II project and implementing new initiatives in order to substantially strengthen its position in the fast-growing global LNG market.