Russian energy giant Gazprom and China National Petroleum Corporation (CNPC) have agreed to boost annual natural gas supplies to China via the Power of Siberia pipeline and the Far East route, Russia’s RIA news agency reported on Tuesday.

According to Reuters last month, China had been seeking to purchase more Russian gas through an existing pipeline after negotiations between the two countries stalled over the construction of a second pipeline.

The Agreements

The deals were signed during Russian President Vladimir Putin’s visit to China, where he is set to attend a military parade at Tiananmen Square on Wednesday marking the end of World War II following Japan’s formal surrender. RIA, citing Gazprom CEO Alexei Miller, said the companies agreed to raise supplies through the Power of Siberia pipeline from 38 billion cubic meters (bcm) per year to 44 bcm per year.

Additionally, gas deliveries via the Far East route will increase from 10 bcm to 12 bcm annually.
Miller also noted that a legally binding memorandum was signed for the construction of the Power of Siberia 2 pipeline to China and the Soyuz Vostok gas transmission pipeline through Mongolia.
“Gazprom and CNPC also signed a new memorandum of strategic cooperation today, reflecting a new phase in our partnership with CNPC on new projects,” Miller said.