CNPC, Gazprom ink agreement on gas supply

The China National Petroleum Corporation (CNPC) said on Friday that it has signed a framework agreement with Russian energy giant Gazprom to import natural gas.

The agreement is a breakthrough after years of negotiation on bilateral gas cooperation, and paves the way for a final deal that the two companies have agreed to sign at the end of this year, said the CNPC in a statement.

Gazprom will start delivering gas to China in 2018, said the CNPC.

Wang Zhen, an expert at the China University of Petroleum, said the agreement will allow China to diversify its gas import sources and enhance its energy security.

China's domestic gas supply met around 70 percent of its demand in 2012.

"The cooperation is also in the interests of Russia, which has sought to diversify export destinations for natural gas," noted Wang.