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On October 22, witnessed by Chinese Premier Li Keqiang and Russian Prime Minister Dmitry Medvedev, CNPC Chairman Zhou Jiping and Leonid V. Mikhelson, Chairman of the Management Board of NOVATEK, signed a framework agreement on purchase and sale of LNG in the Yamal LNG project. Mr. Zhou Jiping also signed with Igor Sechin, Rosneft President and Chairman of the Management Board, a document on major terms of commissioning schedule and oil supply for Tianjin Refinery.

On September 5, 2013, CNPC and NOVATEK signed an agreement on purchase of a 20% equity share in Yamal LNG. According to the LNG purchase and sale framework agreement signed this time, CNPC will purchase no less than 3 million tons of LNG per annum for a period of 15 years with possible supply extension after negotiation.

NOVATEK is Russia’s largest independent natural gas producer. Yamal LNG project, located in the arctic region in Russia, is a joint venture with integrated upstream and downstream businesses including gas field development, LNG trade, project financing, and engineering construction.

Under the detailed work schedule signed between CNCP and Rosneft, a joint final investment decision on implementation of Tianjin Refinery project is to be made in 2017, and the Refinery will be completed and put into operation before the end of 2020.

CNPC holds a 51% share and Rosneft holds a 49% share in the Tianjin Refinery project. Rosneft will be the major oil supplier for the refinery, which will be granted the rights for crude import, oil products export and product sales by the Chinese government. ?