Russia, China agree gas supply terms: Gazprom

22nd September 2010, Comments 0 comments

Moscow and Beijing have agreed on key supply terms for future Russian gas deliveries to China, which is seeking to secure energy resources to fuel its growing economy, Gazprom said on Wednesday.

Russian gas giant Gazprom, keen to diversify its energy clients, has been in talks with China National Petroleum Corporation (CNPC) to start sending gas to China but the two countries have yet to agree on pricing.

Gazprom, the world's largest gas producer, said in a statement on Wednesday that Russian and Chinese officials in Beijing had agreed on "key targets and parameters of the future supplies of Russian natural gas," adding that supplies were scheduled to start in 2015.

The statement did not provide further details.

During Prime Minister Vladimir Putin's visit to Beijing last October, Gazprom and CNPC signed a framework agreement that could see about 70 billion cubic metres of natural gas sent to China yearly.

No financial details were released at the time and Putin only said the companies would peg the gas price to an "Asian oil basket."

Top energy officials, including Putin's powerful deputy in charge of energy, Igor Sechin, and Gazprom deputy chief executive Alexander Medvedev, are in China ahead of President Dmitry Medvedev's visit there on September 26-28.

Sechin said Russia and China would agree on the pricing terms in the first half of next year, a government statement said on Tuesday.

Earlier Tuesday Russia and China had agreed to invest five billion dollars in the construction of a refinery in Tianjin, a port city near Beijing, a Sechin aide said.

© 2010 AFP

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