Russia's Gazprom and China National Petroleum Corporation (CNPC) are conducting active negotiations on cooperation in the sphere of underground gas storage on the territory of China, a representative of the corporation's management told Interfax, saying that both parties are apparently seriously interested.

"Of the several possible locations of the underground gas storage facility offered by CNPC, Gazprom has already selected one, in the eastern Chinese province Jiangsu," the source said.

The contract for the supply of Russian gas to China signed in 2014 envisages highly uneven supply. Bearing in mind the big distance from the deposits (Chayanda, Kovykta) to the Chinese border, regulation of uneven supplies by taking gas on the deposit is less effective than the construction of a gas storage facility at the end of the pipe. However, few structures suitable for the construction of gas storage facilities have now been found in the Far East.