Gazprom and CNPC Signed $400 Billion 30-Year Gas Deal
Yesterday, under the witness of Chinese President Xi Jinping and Russian President Vladimir Putin, China National Petroleum Corporation and Russia Gazprom signed“Eastern Gas Sales Contract” in Shanghai. Discussion of Natural gas cooperation between China and Russia dates back to the end of last century when China’s natural gas market just began to develop, lasting for more than ten years.
This gas deal is valid for 30 years and valued $400 billion, the details of current agreement is still not public. This is a great symbol of China-Russia continuously fortified relation. Two leaders witnessed the signing of the agreement, which highlights that both sides regard the improvement of bilateral relation as the utmost importance.
It is expected that Russia will provide China with 38 billion cubic metres of gas per year from 2018. The price for per unit is not revealed. Russia raised $388 per thousand cubic meters, while China proposes $380 per thousand cubic meters. The final price might be in between.