Business World

Friday 29 August 2014

China and Russia agree gas deal

ENERGY

Published 22/05/2014 | 02:30

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China and Russia signed a long-awaited natural gas supply deal yesterday, securing the world's top energy user a major new source of the clean-burning fuel and opening a market to Moscow as Europeans look elsewhere for their energy.

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The deal would see Russia supply 38 billion cubic metres of gas to China each year for 30 years under a contract valued in excess of $400bn (€290bn) overall.

The gas will be transported along a new pipeline linking Siberian gas fields to China's main consumption centres near its coastline.

Russian President Vladimir Putin and Chinese counterpart Xi Jinping witnessed the deal in Shanghai between Russian state-controlled company Gazprom and China National Petroleum Corp.

Symbolically, for Mr Putin the agreement represents a major triumph as he seeks to forge new partnerships in Asia while customers in Europe attempt to reduce their reliance on Russian gas in the wake of the crisis in Ukraine.

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