China Petroleum & Chemical Corporation announced that on June 5th SINOPEC, Novatek and Gazprombank signed an agreement, with key terms included, in Moscow to establish a joint venture in natural gas trading in China.
The agreement was signed in the presence of President Xi Jinping and President Vladimir Putin by Chairman of SINOPEC Dai Houliang and Chairman of Management Board of Novatek Leonid V. Mikhelson.
Under the agreement, the joint venture will purchase Liquefied Natural Gas (LNG) from Novatek ‘s portfolio and sell it to end customers in the Chinese market. The cooperation is subject to necessary regulatory approvals.
“The partnership combines the advantages of all shareholders and generates positive economic and social benefits. It will further advance the diversification of China’s natural gas resources, help meet China’s growing natural gas demands and improve the condition of China’s atmosphere,” said Dai Houliang, Chairman of SINOPEC.