Sunday, November 09, 2014

Putin, Xi Jinping sign mega gas deal on second gas supply route

President Vladimir Putin and Chinese leader Xi Jinping have signed a memorandum of understanding on the so-called “western” gas supplies route to China. The agreement paves the way for a contract that would make China the biggest consumer of Russian gas.
Russia’s so-called “western” or "Altay" route would supply 30 billion cubic meters (bcm) of gas a year to China.
The new supply line comes in addition to the “eastern” route, through the “Power of Siberia” pipeline, which will annually deliver 38 bcm of gas to China. Work on that pipeline route has already begun after a $400 billion deal was clinched in May. 

“After we have launched supplies via the “western route,” the volume of gas deliveries to China can exceed the current volumes of export to Europe,” Gazprom CEO Aleksey Miller told reporters, commenting on the deal. 

Speaking to journalists on the eve of his visit to Beijing, Putin was optimistic about prospects for the new gas deal with China.
“We have reached an understanding in principle concerning the opening of the western route,” Putin said. “We have already agreed on many technical and commercial aspects of this project, laying a good basis for reaching final arrangements.”
The “western” route deal is one of the 17 agreements signed at the Sunday meeting between Putin and Xi.
They also included a framework agreement between Gazprom and China’s CNPC on gas deliveries and a memorandum of understanding between Gazprom and another Chinese energy giant, CNOOC.
Gazprom and CNPC have also signed a preliminary agreement for China National Oil and Gas Exploration and Development to take a 10 percent stake in Russia's Vancorneft.
Among the business issues discussed by Putin and Xi at their fifth meeting this year was the possibility of payment in Chinese yuan, including for defense deals military, Russian presidential spokesman Dmitry Peskov was cited as saying by RIA Novosti........


  1. Chinese, Russian presidents vow to enhance energy cooperation ...

    BEIJING, Nov. 9 (Xinhua) -- Chinese President Xi Jinping and his Russian counterpart Vladimir Putin vowed to enhance energy cooperation on Sunday.

    Strengthening energy cooperation is of great significance to safeguarding the two countries' energy security, the two leaders agreed during their meeting ahead of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting slated for Nov. 10-11.

    The two countries have seen broader and closer feasible cooperation in new situation, according to the two leaders.

    They agreed to push forward the construction of the east route gas pipeline as scheduled, launch the west route at an early date, negotiate major oil projects in an earnest manner, and discuss new cooperation projects of nuclear power and hydropower.

    The two leaders also agreed to beef up cooperation in high-speed rail, high technology, aerospace and finance sectors.

    Xi has held talks or met with Putin for ten times since he assumed the office of Chinese presidency in March 2013.

  2. Russian gas supplies to China may be bigger than gas supplies to Europe - Gazprom CEO ...

    Gas supplies from Russia to China mid-term may be bigger than supplies to Europe, Gazprom’s CEO Alexei Miller said on Sunday while commenting on the bilateral documents signed between Russia and China.

    Miller said the countries are signing a Memorandum on supplies of natural gas from Russia to China along the western route, and a frame agreement between Gazprom and CNPC on gas supplies along the western route.

    “These documents first of all fix that the western route is a priority project of our gas cooperation,” he said.

    On Sunday, Russia and China signed 17 more documents, which also refer to cooperation in the gas sector. Those are a memorandum on Russian gas supplies along the western route, a frame agreement on supplies of gas from Russia to China, a memorandum on mutual understanding between Gazprom and the China National Offshore Oil Corporation (CNOOC Group).................

  3. Russia, China sign memorandum on natural gas delivery via western route ...

    Russia and China have signed 17 documents Sunday, including the memorandum on the delivery of Russian natural gas to China via the so-called "western route".

    The memorandum on the delivery of Russian natural gas to China via the western route, the framework agreement on gas supplies between Russia's Gazprom and China's CNPC and the memorandum of understanding between the Russian energy giant and the Chinese state-owned oil and gas corporation were among the documents signed Sunday in the presence of Russian President Vladimir Putin and Chinese leader Xi Jinping ..........Read more:


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