Russian state-owned gas company Gazprom will increase its gas supplies to China and build a new pipeline to China through Siberia, state-owned news agency RIA Novosti reported Tuesday, citing Gazprom CEO Alexey Miller.

Gazprom's new pipeline, named Power of Siberia 2, will be 3,000 kilometers long, and will supply gas to China through Mongolia from western Siberian fields, RIA reported.

The contract for Power of Siberia 2 to supply gas is expected to be valid for 30 years, the report said.

Gazprom and China National Petroleum Corp., the parent of PetroChina (SHA:601857, HKG:0857) also agreed to boost natural gas supply to China through the first Power of Siberia pipeline to 44 billion cubic meters from 38 billion cubic meters, RIA Novosti reported.

Both oil giants also agreed to increase supplies via Gazprom's Far Eastern route to 12 billion cubic meters from 10 billion cubic meters, the filing said.

The supplies will be priced lower than those charged to Gazprom's European buyers, Reuters reported separately.

Shares in PetroChina closed 4% higher in Shanghai on Tuesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)