Gazprom and CNPC begin talks on price of gas deliveries to China
Wednesday, 04 Nov 2009
Interfax reported that a Gazprom delegation led by Mr Alexander Medvedev Deputy CEO held talks with China National Petroleum Corporation on Russian gas deliveries to China in Shanghai on Sunday and Monday.
Gazprom said the parties held detailed discussions on pricing, volumes, routes and the timeframe for the deliveries.
Mr Medvedev and Mr Wang Dongjin Vice President of CNPC agreed to set up an expert working group to discuss joint participation in projects to create gas chemical complexes in the Far East.
Negotiations on the key issues surrounding Russian gas deliveries to China and potential joint projects will resume at the end of 2009.
It was reported earlier that the framework agreement on Russian natural gas deliveries to China was signed in October. The document details the main provisions of the future contract. The deliveries will be made on two routes up to 30 billion cubic meters on a western route and up to 38 billion cubic meters on an eastern route.
The western route could be organized in the shortest possible time, since there are reserves of gas available the infrastructure exists, and there is no need to create gas chemical and gas processing capacity. The document fixes the pricing to an oil basket index. One Russian official said the contract could be signed in June 2010 and actual deliveries could begin in 2014 to 2015.
