Russia, China add to $400 billion gas deal with accord

Bloomberg

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Alexey Miller, Chief Executive Officer of OAO Gazprom. Alexey Miller, Chief Executive Officer of OAO Gazprom.
Russia and China signed a second initial natural-gas supply agreement, following a $400 billion deal earlier this year, as President Vladimir Putin broadens links with the world’s second-biggest economy.
OAO Gazprom is discussing the supply of as much as 30 billion cubic meters of gas annually from West Siberia over 30 years, the company said yesterday. Russia may start selling gas to China within four to six years as part of an agreement with state-owned China National Petroleum Corp., Gazprom Chief Executive Officer Alexey Miller told reporters in Beijing.
Russia has turned to China to spur its economy as relations soured with the U.S. and Europe over the Ukraine crisis. Putin ended more than a decade of talks over supplying China with gas this year when it struck the May deal.
“Together we have carefully taken care of the tree of Russian-Chinese relations,” Chinese President Xi Jinping yesterday said at a meeting with Putin at the Asia-Pacific Economic Cooperation meeting in Beijing. “Now fall has set in, it’s harvest time, it’s time to gather fruit.”
Putin called the earlier agreement between state-run Gazprom and its Chinese partners “epochal.”
CNPC also signed an initial agreement with OAO Rosneft to acquire 10 percent of the Vankorneft hydrocarbon operations in Siberia.
Under the agreement earlier this year, China will import 38 billion cubic meters of gas from Russia annually over three decades starting as soon as 2018.

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