Baker & McKenzie announced today that it advised PetroChina on its recent landmark gas sales agreement with Shanghai Natural Gas Pipeline, to begin supplying natural gas to Shanghai through its West-East Gas Pipeline project. The agreement was signed between the parties on January 1, 2004.
Baker & McKenzie advised PetroChina on all aspects of this high-profile transaction. This is the first time that two major Chinese companies have entered into a long-term, take-or-pay natural gas sales agreement, which meets the international standards applicable to similar types of agreements. The sales agreement entered into by PetroChina and Shanghai Natural Gas Pipeline will establish an industry practice in China and will be used as a “model agreement” for similar transactions in the future.
The Baker & McKenzie team was led by Shanghai-based China Practice Group partner, Stanley Jia, who was supported by associates Jennifer Chen and Beatrice Schaffrath.
Commenting on Baker & McKenzie’s role, Stanley Jia said –
“We are extremely pleased to have had the opportunity to represent PetroChina on this ground-breaking transaction. The signing of the gas sales agreement by PetroChina and Shanghai Natural Gas Pipeline is a major milestone and breakthrough for the West-East pipeline project. We are quite optimistic that it will lead to similar transactions in China in the future.”
“Having advised PetroChina on all initial aspects of the West-East Gas Pipeline project, we are delighted to see the project commence commercial operations and come to a successful fruition.”