SHANGHAI, May 21 (RIA Novosti) - Russia’s overall investment on delivering gas to China is $55 billion and China’s investment is estimated at around $22 billion according to a contract signed by the two countries in Shanghai, Russian President Vladimir Putin said Wednesday.
Gazprom and 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 along the eastern route.
The document was under discussion for several years with the main stumbling block being the gas price that the parties finally agreed on at the last minute.
Gazprom CEO Alexei Miller declined to name the contract price for gas, citing commercial secrets. He did, however, say that the cost of the entire contract was $400 billion, which if calculated, comes to around $350 per 1,000 cubic meters.
Miller also specified that $55 billion in investments will be used for the oilfield development and the construction of a pipeline.
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. President Putin’s current visit to China was the final stage in the negotiating process.
The Gazprom CEO said earlier the company could receive advance payment from China for the gas, which could start flowing as early as 2018.