May 12, 2014
A contract on Russian gas deliveries to China is nearing completion and the finishing touch may be added ahead of President Putin’s upcoming visit to Beijing, Russian Deputy Energy Minister Anatoly Yanovsky said Monday.
“The contract is 98 percent ready. The final touch may be added prior to the president’s visit,” Yanovsky told RIA Novosti at a press conference.
In early March, Gazprom chief Alexei Miller said the Russian energy giant hoped to sign in May a 30-year agreement with China to supply it with an annual 38 billion cubic meters of natural gas.
The tentative agreement between Gazprom and China National Petroleum Corporation has been overseen by President Vladimir Putin and Chinese premier Xi Jinping, but its completion has been delayed over pricing disagreements.
Export volumes are expected to eventually rise to 60 billion cubic meters per year.
CNPC also signed an agreement with state-owned Rosneft, the world’s largest listed oil producer, about the basic terms of prepaid crude oil supplies to China.
Under a 2009 deal, Rosneft supplies 15 million metric tons a year to China. Sechin said the amount would eventually be raised to 31 million metric tons annually.
Russia and China have also signed a cooperation agreement to build a refinery in China and engage in oil prospecting and extraction.