Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, today signed in Beijing a Memorandum of Understanding in the field of underground gas storage and gas-fired power generation.

The signing ceremony was attended by Vladimir Putin, President of the Russian Federation, and Xi Jinping, President of the People's Republic of China.

According to the document, the signatories intend to explore the prospects for cooperation in building underground gas storage (UGS) and gas-fired power generation facilities in China.

The parties will analyze and assess the geological, technological, and economic conditions for creating UGS facilities in Heilongjiang, Jiangsu, and Zhejiang. A joint venture will be set up to implement UGS-related projects. By late August, the parties will examine and select target projects in the field of gas-fired heat and power generation from among those offered by CNPC in order to make an investment decision and choose an organizational and legal framework for projects to be executed.

“The Russian-Chinese dialogue in the gas sector is crossing into new territory. Our cooperation in the field of underground gas storage and power generation will help deepen the relationship between the companies and considerably improve the environmental situation in China,” said Alexey Miller.