China, Russia Ink Gas Deal - The New Indian Express

China, Russia Ink Gas Deal

Published: 21st May 2014 06:30 PM

Last Updated: 21st May 2014 06:30 PM

SHANGHAI: China and Russia Wednesday inked a long-awaited gas deal here, ending the decade-long natural gas supply talks between the two countries.

The deal came a day after visiting Russian President Vladimir Putin said that "significant progress" has been made over the price in the lengthy talks, Xinhua reported.

Two documents -- China and Russia Purchase and Sales Contract on East Route Gas Project and a memorandum -- were signed at a ceremony attended by Chinese President Xi Jinping and the Russian president.

Over the past years, talks, which started in 2004, were stalled over price. The agreed price in the latest deal is not known.

According to China National Petroleum Corporation (CNPC), the contract will see the east route pipeline supplying China with 38 billion cubic metres of natural gas annually from 2018.

In 2013, CNPC signed a framework gas supply agreement with Russia's Gazprom, the world's largest gas company.

CNPC said on its website that the agreement would accelerate economic and social development in Russia's far east region, and also diversify the export of the major oil and natural gas exporter.

The gas supply deal was signed on the sidelines of the fourth Summit of the Conference on Interaction and Confidence Building Measures in Asia, a regional security summit which Xi and Putin are attending.

China and Russia have vowed to strengthen cooperation in energy and infrastructure in Russia. According to a joint statement signed by the two leaders after their talks Tuesday, the two countries will "establish a comprehensive energy cooperation partnership".

Zhou Jiping, chairman of CNPC, and Wu Xinxiong, head of China's National Energy Administration and also deputy head of the National Development and Reform Commission, China's top economic watchdog, signed the deal on behalf of China.

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