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China, Russia sign $400 billion gas deal - The Washington Post
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Analysts say the price Russia agreed to for natural gas under the May 2014 agreement with China is about $350 close to the $380 price per 1000 cubic metres at which Russia sold natural gas to Europe for 2013. The deal involves building the pipelines on the Russian and Chinese sides and developing natural gas fields in Russian Siberia. The cost of the pipelines alone could be $70 billion, according to think tank RusEnergy, and the total deal worth about $400 billion. China National Petroleum website says Russia will begin supplying natural gas in 2018 with 38 billion cubic metres. By keeping the price "a commercial secret" in the words of Gazprom CEO Miller, Russia and China benefit from not having to renegotiate their contracts with other suppliers and buyers. Putin pointed out that the price has also been pegged to the future price of petroleum products and oil, which are expected to remain high.
The 2014 Russia-China Natural Gas Agreement
05/21/2014
Questions about the price agreed to betwen the two countries. Price remains hazy and it appears no ageement was reached on price, say analysts.
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