Russia Gives China Gas

Via The New York Times, news that Gazprom signed a general trade agreement with China National Petroleum Corporation during a state visit by Russian officials.  As the article notes:

“…The deal calls for the supply of nearly 2.5 trillion cubic feet of gas per year via two potential routes originating from Siberia. China has one of the fastest-growing economies in the world and has been searching far and wide for new sources of energy. It has focused on Central Asian nations and Russia as potential suppliers of large amounts of natural gas.

Russian and Chinese officials did not give any estimates of the worth of the gas deal, if it were put into effect.

Gazprom said in 2006 that Russia would supply natural gas to China via two pipelines, but no contract has been signed because the state-run enterprises in the two countries have failed to agree on pricing. The agreement reached Tuesday appeared to be an affirmation of the deal from 2006, but did not contain the crucial mechanisms needed to for the actual trade to start.

Mr. Miller said that a price formula in the potential gas contract would be based on Gazprom’s experience in gas exports and principles of international trade, according to The Associated Press.

Xinhua, the Chinese state news agency, gave few details on the gas trade agreement or other economic deals reached between the nations. Its report on the meeting between Mr. Putin and Mr. Wen contained only broad statements stressing the cooperation between Russia and China. “The bilateral economic cooperation has withstood the test of the global financial crisis,” the Xinhua report said, citing Mr. Putin.

Earlier on Tuesday, the two countries signed trade deals worth a total of $3.5 billion, according to Alexander Zhukov, the Russian deputy prime minister. There were about 40 deals made, including a pair of $500-million bank deals, he told reporters.”

This entry was posted on Tuesday, October 13th, 2009 at 10:05 am and is filed under China, China National Petroleum Corporation, Gazprom, Russia.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

Comments are closed.

Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.