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Gazprom and CNPC Sign Agreement to Increase Gas Supplies to China, RIA Reports

Russia's RIA reported that Gazprom, the Russian energy company, and China National Petroleum Corporation have signed an agreement to increase the annual gas supply to China through the Power of Siberia Pipeline as well as the Far Eastern Route.

Reports last month indicated that China wanted to purchase more Russian gas via an existing pipeline, as the talks between two countries failed to progress.

The agreements were signed by Russian President Vladimir Putin during his visit to China. He is scheduled to attend on Wednesday a military display on Tiananmen square to mark the official end of World War Two following Japan's surrender.

RIA, citing Gazprom CEO Alexei Miller said that Gazprom has agreed with CNPC to increase their supply to 44 billion cubic meters (bcm), from 38 bcm, a year.

The two parties have also agreed to raise gas supplies through the Far Eastern route from 10 to 12 BCM.

Miller said that a legal binding memorandum had been signed to construct the Power of Siberia 2 gas pipeline from Russia to China, and the Soyuz Vostok Transit Gas Pipeline through Mongolia. Miller added that Gazprom and CNPC signed a memorandum today on strategic cooperation. This marks a new phase in the work we do with CNPC for new projects. (Reporting and editing by Guy Faulconbridge in Melbourne, Lidia Kelly reported from Melbourne)

(source: Reuters)