Gazprom, China National Petroleum Corp Discuss Strategic Partnership, Power of Siberia

Gazprom CEO Alexei Miller has met with the board chairman of China National Petroleum Corporation (CNPC) Dai Houliang in Beijing, with Gazprom stating afterwards that “We commend the progress and prospects of the strategic partnership between Gazprom and CNPC. Russian gas is being reliably exported to China via the modern Power of Siberia gas pipeline, the ‘eastern’ route, to the maximum volumes stated in the contract. Preventive maintenance operations on the pipeline were conducted without causing any interruption to gas supply in spring 2025, while the implementation of the ‘eastern’ route project is on schedule”.

In June 2025, Gazprom, CNPC and PipeChina signed a series of agreements regulating interactions during the process of commissioning and operating the cross-border section of the gas pipeline over the Ussuri River. Gas supply is scheduled to begin in 2027.

A Gazprom press release stated that “Alexei Miller and Dai Houliang paid special attention to prospective projects for Russian gas supply to China, taking into account the rapidly growing Chinese economy. Our mutually beneficial collaboration with our Chinese partners is founded on realistic expectations regarding the global energy market of the present and future. Reliable, traditional energy sources will continue to be in-demand for a long time. The cleanest and most efficient of them is natural gas. Natural gas will play a pivotal role in helping China achieve its environmental and economic goals in coming decades.”

Gazprom is working on the assumption that demand for gas in the country will undergo significant long-term growth. A series of China’s research agencies have forecast that gas consumption will reach 600-650 billion cubic meters by 2035-2040.

The Power of Siberia pipeline began supplying gas to China in 2019 as part of a long-term sale and purchase agreement between Gazprom and CNPC. Since 2020, supplies by Gazprom have exceeded annual contractual obligations. Daily supply via the Power of Siberia pipeline reached the maximum contractual level on December 1, 2024, one month ahead of the initial schedule.

A long-term sale and purchase agreement for the supply of natural gas along the Far East route was signed in February 2022. After the full ramp-up is complete, Russia’s pipeline gas exports to China will increase by 10 bcm to 48 bcm per year.

China’s need for securing Power of Siberia 2 routes was also enhanced last month after fighting between Iran and Israel broke out, increasing the likelihood of the Strait of Hormuz supply chain being blocked and further prioritizing Russian supplies.