Wednesday, May 21, 2014 6:46:47 AM
Russia And China Sign Gas Pipeline Megadeal
MICHAEL KELLEY
MAY 21, 2014, 5:40 AM
Businessinsider.com
REUTERS/Aly Song
Russia's President Vladimir Putin and his Chinese counterpart Xi Jinping shake hands in Shanghai May 21, 2014.
Russia's Gazprom and China's China National Petroleum Corporation (CNPC) have signed a historic 30-year contract to supply natural gas to China, according to Russia Today and confirmed by Bloomberg.
The total value of the contract is $400 billion, Gazprom CEO Aleksey Miller told RT, although the price in the document remains a "commercial secret." Negotiations have been ongoing for more than a decade.
The deal would send 38 billion cubic meters of natural gas to China each year, starting in 2018, with the potential to expand the annual capacity to 61 billion cubic meters.
The gas will be sent via a new eastern pipeline linking the countries, although Oliver Bullough reports that there are still uncertainties about the deal.
Jane Perelez of The New York Times went further, reporting that it's unclear "if the accord was an actual contract with details of prices and terms, or if it was a memorandum of understanding that would signal the need for further negotiations."
China consumed about 170 billion cubic meters of natural gas in 2013 and set a target of up to 420 billion cubic meters a year by 2020.
Europe is Russia’s largest energy importer as it bought more than 160 billion cubic meters of natural gas in 2013, but tensions and sanctions over Putin's meddling in Ukraine have Russia looking elsewhere.
Consequently, the deal is huge for the Kremlin since natural gas represents nearly 60% of Russia's total exports. That said, the amount of gas is still only about a fifth of what Russia sends to Europe.
russia china pipeline
Gazprom
The new pipeline that will be built to send Russian gas to China.
Here's a look at the major gas pipelines between Russia and Europe.
ukraine gas map
Read more: http://www.businessinsider.com/russia-and-china-sign-billion-gas-pipeline-mega-deal-2014-5#ixzz32LU6BVLg
MICHAEL KELLEY
MAY 21, 2014, 5:40 AM
Businessinsider.com
REUTERS/Aly Song
Russia's President Vladimir Putin and his Chinese counterpart Xi Jinping shake hands in Shanghai May 21, 2014.
Russia's Gazprom and China's China National Petroleum Corporation (CNPC) have signed a historic 30-year contract to supply natural gas to China, according to Russia Today and confirmed by Bloomberg.
The total value of the contract is $400 billion, Gazprom CEO Aleksey Miller told RT, although the price in the document remains a "commercial secret." Negotiations have been ongoing for more than a decade.
The deal would send 38 billion cubic meters of natural gas to China each year, starting in 2018, with the potential to expand the annual capacity to 61 billion cubic meters.
The gas will be sent via a new eastern pipeline linking the countries, although Oliver Bullough reports that there are still uncertainties about the deal.
Jane Perelez of The New York Times went further, reporting that it's unclear "if the accord was an actual contract with details of prices and terms, or if it was a memorandum of understanding that would signal the need for further negotiations."
China consumed about 170 billion cubic meters of natural gas in 2013 and set a target of up to 420 billion cubic meters a year by 2020.
Europe is Russia’s largest energy importer as it bought more than 160 billion cubic meters of natural gas in 2013, but tensions and sanctions over Putin's meddling in Ukraine have Russia looking elsewhere.
Consequently, the deal is huge for the Kremlin since natural gas represents nearly 60% of Russia's total exports. That said, the amount of gas is still only about a fifth of what Russia sends to Europe.
russia china pipeline
Gazprom
The new pipeline that will be built to send Russian gas to China.
Here's a look at the major gas pipelines between Russia and Europe.
ukraine gas map
Read more: http://www.businessinsider.com/russia-and-china-sign-billion-gas-pipeline-mega-deal-2014-5#ixzz32LU6BVLg
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