Gazprom (Russia) and China National Petroleum Corporation (CNPC, China) have signed a contract for the supply of Russian gas to China through the "Eastern Route" pipeline. Under the terms of the contract, Gazprom will deliver 38 bcm/year of gas to CNPC over a 30-year period and includes reference to an oil basket and the "take or pay" principle in the pricing formula. Gas will be transported through a new gas pipeline, "Power of Siberia", which will connect the production centres near Irkutsk with the Yakutsk transmission system, the Russian Far East and China. An extensive gas infrastructure network will be set up in Russia's East. Gazprom and CNPC had signed a framework agreement on the basic conditions of supply of natural gas from Russia to China in 2009 and an agreement on the Eastern Route in September 2013.
Source: Gazprom