China, Russia agree on terms of multi-billion dollar gas deal — RT Business

China, Russia agree on terms of multi-billion dollar gas deal — RT Business:

"

AFP Photo / China Out

The long-awaited major gas contract between Russia and China is close to being sealed. The nations' energy corporations signed a string of agreements on energy cooperation on Thursday.

The signings took place after President Vladimir Putin and his Chinese counterpart Xi Jinping met at the G20 summit in St. Petersburg.

Russia’s Gazprom and the China National Petroleum Corporation (CNPC) signed basic conditions for the long-term deal. Russia will supply at least 38 billion cubic meters of gas per year to China, Gazprom said in a press release.  The agreement terms cover the start date and volume of gas deliveries, the take-or-pay level, the amount of guaranteed payments, and the gas transfer point. However, the companies didn’t specify a solution to the main stumbling block – the issue of price.

Gazprom reported that the deal is expected to be finalized by the start of 2014. The project also envisages the construction of a new Russian pipeline to China by 2018."

'via Blog this'