SG:China and Russia to sign 30 year natural gas supply agreement
China and Russia reached broad agreement at a meeting in Moscow on May 31st 2011 for the latter to supply China with natural gas over 30 year period.
Mr Igor Sechin deputy PM of Russia said that government will supply China with 68 billion cubic meters of gas per year. Gazprom and PetroChina will wrap up negotiations including pricing issues by June 10th 2011.
Russia is proposing to export natural gas at a price of USD 300 per thousand cubic meters of natural gas while China would like to keep the price below USD 200 per thousand cubic meters. The demand for natural gas in China has been increasing rapidly with natural gas demand topping 105 billion cubic meters last year.
