Russia's Gazprom and China National Petroleum Corporation signed an agreement to increase annual gas supplies to China via the Power of Siberia pipeline as well as via the Far Eastern Route, Russia's RIA agency reported on Tuesday, APA reports, citing Reuters.
Reuters reported last month that China was seeking to buy more Russian gas through an existing pipeline as talks between the two countries have failed to make progress on building a second link.
The agreements were signed during Russian President Vladimir Putin's visit to China where he is due to attend a military parade on Tiananmen Square on Wednesday marking the end of World War Two after Japan's formal surrender.
RIA, citing Gazprom's CEO Alexei Miller, said that Gazprom and CNPC have agreed to increase supplies to 44 billion cubic metres (bcm) a year from 38 bcm a year.
Additionally, the two have agreed to increase gas supplies via the Far Eastern route to 12 bcm from the 10 bcm.
Miller also said that a legally binding memorandum has been signed for the construction of the Power of Siberia 2 pipeline to China and the Soyuz Vostok transit gas pipeline through Mongolia.
"Gazprom and CNPC also signed today a new memorandum on strategic cooperation, which reflects a new stage in our work with CNPC on new projects," Miller said.
