Russia and China drawing natural gas agreement

  CNPC executives have met with two major Russian oil and gas firms this week to discuss increased cooperation
and trade between the two countries, especially in regard to natural gas agreements.This will have effect on the cng compressor in the countries.

  CNPC chairman Zhou Jiping met with Gennady Timchenko, non-executive director of Novatek, in Beijing on
Tuesday.They exchanged positive views on issues relevant to the engineering, procurement and construction,
project management, LNG purchase and sale, and the financing of the Yamal project. Jiping met with with
Gazprom chairman of Gazprom Management Committee Alexey Miller the next day. They spoke highly of the
significance of the Eastern Route of the proposed Russia-China Gas Pipeline in energy cooperation between
the two countries.

  According to CNPC: “The two companies showed constructive attitudes in negotiating the Eastern Route project.
Consensus in the technical terms has been reached between CNPC and Gazprom, while the business negotiation
is ongoing,including the CNG dispenser. The two Chairmen also expressed their wish to see the signing of a gas purchases and sales contract
via the Eastern Route before long.”CNPC vice-president Wang Dongjin, PetroChina vice-president Huang Weihe,
and CNPC deputy chief-economist Wang Lihua were present at the meetings.

  Russian reliance on a European market to buy its huge reserves of natural gas has been shaken by the crisis
in Ukraine.Deputy prime minister Arkady Dvorkovich is currently in Beijing discussing trade agreements with
his Chinese counterparts. He is reported to have confirmed that a final agreement on gas sharing would be
reached by the end of next month, and that only the base price was left to agree.Premier Vladimir Putin will
be visiting Beijing next month with the intention of bringing negotions to a close and signing an agreement.