MOSCOW, June 18 (RIA Novosti) – Russian energy giant Gazprom is due to resume negotiations with China on gas supplies via western route and also deliveries of liquefied natural gas (LNG), Gazprom Vice Chairman Alexander Medvedev told journalists Wednesday.
“We do not dismiss the possibility of LNG supplies to China despite the signing of the contract on pipeline gas,” he said at a briefing adding that this concerns supplies from the Vladivostok-LNG and Sakhalin-2 projects in Russia’s Far East.
Gazprom expects to receive prepayment from China National Petroleum Corporation (CNPC) before the supplies begin. The gas supplies are expected to start in four years or in six years, depending on the readiness of the Chinese infrastructure.
“We expect the Chinese infrastructure to be ready as early as possible [in four years],” Medvedev said.
Gazprom and CNPC signed a 30-year contract in late May for the sale of Russian gas to China at a volume of 38 billion cubic meters per year with delivery along the eastern route. The deal is estimated to be worth $400 billion. Russia is planning to invest $55 billion and China around $22 billion in the gas deal.
