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Gazprom, China Petroleum in talks for gas deals
March 14, 2013, 9:56 am

 [Getty Images]

China and Russia are struggling to agree on the price for the gas [Getty Images]

Gazprom CEO Alexei Miller and top officials from state-owned China National Petroleum Corporation (CNPC) held talks on Wednesday in an effort to finally conclude a 30-year deal for Russian gas deliveries to China.

“The sides discussed a wide range of issues about the countries’ cooperation in the gas sphere,” Gazprom said in a statement, adding that: “Special attention was paid to the key commercial and technical parameters of pipeline gas supplies to China, in particular from the Sila Sibiri gas pipeline.”

Russia is the biggest exporter of energy while China is the largest energy consumer.

Gazprom said in February it aimed to sign the relevant contract with China by the end of this year.

Arkady Dvorkovich, Russia’s deputy prime minister, previously said basic agreements on the contract could be reached by late March.

Talks over what would be a massive energy deal between Russia and energy-hungry China have been underway since the two sides signed a framework agreement in 2009, however, they have faltered over failure to agree on pricing.

Under the deal, Gazprom, which is seeking to increase supplies to Asia as it faces problems in the European market, would deliver up to 68 billion cubic metres of gas to China annually for 30 years.

But the price for the gas has been a major stumbling block, preventing the two sides striking a final deal.

Wednesday’s talks, attended by Gazprom Deputy CEO Alexander Medvedev, also focused on potential LNG (liquefied natural gas) supplies from Gazprom’s future gas liquefaction plant in Russia’s Far East.

China was represented by CNPC chairman Jiang Jiemin and general manager Zhou Jiping.

Source: Agencies

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