News / Asia

China, Russia Sign Major Gas Deal

China, Russia Sign 30-Year Gas Deal, Broaden Cooperationi
William Ide
May 21, 2014 2:59 PM
Chinese state media say Beijing and Moscow have signed a 30-year multi-billion dollar deal for natural gas on the sidelines of an Asian summit in Shanghai. There were few details about the widely-anticipated agreement Wednesday, but it is considered a key part of efforts to double their annual trade by 2020 and boost cooperation in a wide range of fields from space technology to infrastructure. VOA's Bill Ide has more from Beijing.
Related video report by VOA's Bill Ide:
VOA News
China and Russia signed a long-awaited, 30-year agreement for natural gas worth an estimated $400 billion on Wednesday, securing the world's top energy user a major new source of the clean-burning fuel, Chinese state media and the AP reported.
The deal would see Russia supply 38 billion cubic meters (bcm) of gas to China each year for 30 years under a contract valued in excess of $400 billion, Reuters news agency reported.

Related video report by VOA's Mil Arcega:
Russia and China Ink $400 Billion Energy Deali
Mil Arcega
May 22, 2014 12:12 AM
China and Russia announced a major energy deal Wednesday to supply Biejing, the world’s second largest economy, with a steady supply of natural gas for 30 years. Analysts say the $400 billion agreement comes at an opportune moment for Russian president Vladimir Putin. But as Mil Arcega reports, it also carries risks.
The gas will be transported along a new pipeline linking Siberian gas fields to China's main consumption centers near its coastline.
Russian President Vladimir Putin and Chinese counterpart Xi Jinping witnessed the deal in Shanghai between Russian state-controlled company Gazprom and China National Petroleum Corp (CNPC).
Gazprom CEO Alexei Miller told Russian news agencies the contract was worth a total of $400 billion, according to the AP.

A decade of negotiations

"This is a big deal that has been over a decade in the making," said Raffaello Pantucci, senior research fellow at the Royal United Services Institute for Defence and Security Studies, as reported by the French news agency AFP.

"The Russians in particular wanted to walk away from these meetings in China, highlighting that they have lots of other substantial options on the table in the face of tensions with the West over Ukraine," he said.

"Putin gets a big win and can go back home showing that he has also managed to finally conclude a discussion that had been going on for over a decade," he added.

The sticking point in negotiations between the two countries had been over the gas price.

Symbolically, for Putin the agreement represents a major triumph as he seeks to forge new partnerships in Asia while customers in Europe attempt to reduce their reliance on Russian gas in the wake of the crisis in Ukraine.
The deal also benefits China, which would get supplies that could help to ease gas shortages in the world's second-largest economy and curb reliance on coal.
Shares in Gazprom rose almost 2 percent in reaction to the announcement of the deal.

Some information for this reported provided by Reuters, AFP and AP.

You May Like

Multimedia Brussels Schools, Metro Reopen Under Heavy Guard

City remains under the highest threat alert level due to what authorities have described as a 'serious and imminent' threat of attack

Video Debt-ridden Refugees Await Onslaught of Lebanese Winter

Aid agencies are attempting to reduce potentially devastating consequences of freezing conditions and snowstorms that killed eight last year, including three Syrian refugees

Americans Think About Strange Stuff at Thanksgiving

Millions of Americans are celebrating Thanksgiving, but they’re not necessarily thinking about turkey and stuffing

This forum has been closed.
Comment Sorting
by: Anthony Araneta from: Philippines
May 25, 2014 7:12 PM
I thought China is a Oil producing country, how come it imports from russia, the natural gas?

by: Igor from: Russia
May 22, 2014 12:47 AM
Mr. Obama, pls go on with your sactions and prepare to receive sactions from Russia too. We will be ready to cut off gas to Ukraine of those in Kiev do not pay us the debt.

by: Artur from: Moscow
May 21, 2014 4:29 PM
China seems a friend of Russia,but it actually pursued its own interests. Now, China has a very great influence over Russia and I am very skeptical of Russia-China friendship. Do you remember how China attacked USSR some decades ago?

by: meanbill from: USA
May 21, 2014 11:19 AM
HASHTAG DIPLOMACY? -- The US did everything it could, to convince the Chinese to join the sanctions and embargoes on Russia for their invasion of Crimea. -- by pointing fingers at China, and calling them names, and accusing them of everything, short of killing babies? --- (Yea, that worked, didn't it?)

by: jonathan huang from: canada
May 21, 2014 11:11 AM
lol then how can America punishes Russia again? Now Russia can easily cut the gas supply to Europe. who is gonna cry? I am glad China and Russia two giants watch each others back when fight with evil America. America you are so stupid, you create your own enemies. China wanted to be your friend but you asked it with creating troubles in east and south china sea. now you deserve it. when China and Russia become allies, its your end.
In Response

by: Hoang from: Canada
May 21, 2014 2:12 PM
U.S. is creating electric cars, no need for gas in future. This is a business deal for Russia, not an alliance with China. Russian understands China very well, has its own land dispute with China and does not trust China.

by: MOD from: CHINA
May 21, 2014 9:47 AM
Well,like the logo of KAPPA.Just because we have no choice..... =.= US has already back us two countries in corner.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Paris Attacks, France Steps Up Fight Against ISi
November 24, 2015 3:04 AM
The November 13 Paris attacks have drawn increased attention to Syria, where many of the suspected perpetrators are said to have received training. French President Francois Hollande is working to build a broad international coalition to defeat Islamic State in Syria and in Iraq. Zlatica Hoke reports.

Video After Paris Attacks, France Steps Up Fight Against IS

The November 13 Paris attacks have drawn increased attention to Syria, where many of the suspected perpetrators are said to have received training. French President Francois Hollande is working to build a broad international coalition to defeat Islamic State in Syria and in Iraq. Zlatica Hoke reports.

Video US, Cambodian Navies Pair Up in Gulf of Thailand

The U.S. Navy has deployed one of its newest and most advanced ships to Cambodia to conduct joint training drills in the Gulf of Thailand. Riding hull-to-hull with Cambodian ships, the seamen of the USS Fort Worth are executing joint-training drills that will help build relations in Southeast Asia. David Boyle reports for VOA from Preah Sihanouk province.

Video Americans Sharpen Focus on Terrorism

Washington will be quieter than usual this week due to the Thanksgiving holiday, even as Americans across the nation register heightened concerns over possible terrorist threats. VOA’s Michael Bowman reports new polling data from ABC News and the Washington Post newspaper show an electorate increasingly focused on security issues after the deadly Islamic State attacks in Paris.

Video World Leaders Head to Paris for Climate Deal

Heads of state from nearly 80 countries are heading to Paris (November 30-December 11) to craft a global climate change agreement. The new accord will replace the Kyoto Protocol on Climate Change that expired in 2012.

Video Uncertain Future for Syrian Refugee Resettlement in Illinois

For the trickle of Syrian refugees finding new homes in the Midwest city of Chicago, the call to end resettlement in many U.S. states is adding another dimension to their long journey fleeing war. Organizations working to help them integrate say the backlash since the Paris attacks is both harming and helping their efforts to provide refugees sanctuary. VOA's Kane Farabaugh reports.

Video Creating Physical Virtual Reality With Tiny Drones

As many computer gamers know, virtual reality is a three-dimensional picture, projected inside special googles. It can fool your brain into thinking the computer world is the real world. But If you try to touch it, it’s not there. Now Canadian researchers say it may be possible to create a physical virtual reality using tiny drones. VOA’s George Putic reports.

Video New American Indian Village Takes Visitors Back in Time

There is precious little opportunity to experience what life was like in the United States before its colonization by European settlers. Now, an American Indian village built in a park outside Washington is taking visitors back in time to experience the way of life of America's indigenous people. Carol Pearson narrates this report from VOA's June Soh.

Video Even With Hometown Liberated, Yazidi Refugees Fear Return

While the northern Iraqi town of Sinjar has been liberated from Islamic State forces, it's not clear whether Yazidi residents who fled the militants will now return home. VOA’s Mahmut Bozarslan talked with Yazidis, a religious and ethnic minority, at a Turkish refugee camp in Diyarbakır. Robert Raffaele narrates his report.

Video Nairobi Tailors Make Pope Francis’ Vestments

To ensure the pope is properly attired during his visit, the Kenya Conference of Catholic Bishops asked the Dolly Craft Sewing Project in the Nairobi slum of Kangemi to make the pope's vestments, the garments he will wear during the various ceremonies. Jill Craig reports.

Video Cross-Border Terrorism Puts Europe’s Passport-Free Travel in Doubt

The fallout from the Islamic State terror attacks in Paris has put the future of Europe’s passport-free travel area, known as the "Schengen Zone," in doubt. Several of the perpetrators were known to intelligence agencies, but were not intercepted. Henry Ridgwell reports from London European ministers are to hold an emergency meeting Friday in Brussels to look at ways of improving security.

Video El Niño Brings Unexpected Fish From Mexico to California

Fish in an unexpected spectrum of sizes, shapes and colors are moving north, through El Niño's warm currents from Mexican waters to the Pacific Ocean off California’s coast. El Nino is the periodic warming of the eastern and central Pacific Ocean. As Faiza Elmasry tells us, this phenomenon thrills scientists and gives anglers the chance of a once-in-a-lifetime big catch. Faith Lapidus narrates.

Video Terrorism in Many Forms Continues to Plague Africa

While the world's attention is on Paris in the wake of Friday night's deadly attacks, terrorism from various sides remains a looming threat in many African countries. Nigerian cities have been targeted this week by attacks many believe were staged by the violent Islamist group Boko Haram. In addition, residents in many regions are forced to flee their homes as they are terrorized by armed militias. Zlatica Hoke reports.

Video Study: Underage Marriage Rate Higher for Females in Pakistan

While attitudes about the societal role of females in Pakistan are evolving, research by child advocacy group Plan International suggests that underage marriage of girls remains a particularly big issue in the country. VOA’s Ayesha Tanzeem reports how such marriages leads to further social problems.

VOA Blogs