SHANGHAI, May 21 (RIA Novosti) – The first gas deliveries to China from Russia under a new 30-year contract may begin in the next four to six years, Russian Energy Minister Alexander Novak said Wednesday.
Russian gas giant Gazprom and China’s CNPC earlier in the day signed a 30-year contract on the sale of Russian gas to China at a volume of 38 billion cubic meters per year with delivery via an eastern route.
Russian President Vladimir Putin said that the overall investment volume from the Russian side would be $55 billion and the Chinese would invest around $22 billion. He added that the price for gas would be linked to the price for oil and oil products.
Novak said that an advance for gas deliveries to China was optionally possible at a cost of $25 billion if the Chinese decide to do so.
In March 2013, Gazprom and CNPC signed a memorandum of understanding on the planned gas supplies to China along the eastern route via the Power of Siberia pipeline. The signing of the contract, estimated at $400 billion, however, was repeatedly postponed over pricing disagreements between the sides.
President Putin’s current visit to China was the final stage in the negotiating process.
