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

US, China Have Dueling Definitions of Cybersecurity

Analysts say attribution or or proving that a particular individual or government is responsible for a hack, is a daunting task More

Snowden: I'd Go to Prison to Return to US

Former NSA contractor says he has not received a formal plea-deal offer from US officials, who consider him to be a traitor More

Goodbye Pocahontas: Photos Reveal Today's Real Native Americans

Weary of stereotypes, photographer Matika Wilbur is determined to reshape the public's perception of her people More

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.
Making a Minti
October 07, 2015 4:17 AM
While apples, corn, and cranberries top the list of fall produce in the US, it’s also the time to harvest gum, candy, and toothpaste—or at least the oil that makes them minty fresh. Erika Celeste reports from South Bend, Indiana on the mint harvest.

Video Making a Mint

While apples, corn, and cranberries top the list of fall produce in the US, it’s also the time to harvest gum, candy, and toothpaste—or at least the oil that makes them minty fresh. Erika Celeste reports from South Bend, Indiana on the mint harvest.

Video Activists Decry Lagos Slum Demolition

Acting on a court order, authorities in Nigeria demolished a slum last month in the commercial capital, Lagos. But human rights activists say the order was illegal, and the community was razed to make way for a government housing project. Chris Stein has more from Lagos.

Video Self-Driving Cars Getting Closer

We are at the dawn of the robotic car age and should start getting used to seeing self-driving cars, at least on highways. Car and truck manufacturers are now running a tight race to see who will be the first to hit the street, while some taxicab companies are already planning to upgrade their fleets. VOA’s George Putic has more.

Video TPP Agreed, But Faces Stiff Opposition

President Barack Obama promoted the Trans-Pacific Partnership on Tuesday, one day after 12 Pacific Rim nations reached the free trade deal in Atlanta. The controversial pact that would involve about 40 percent of global trade still needs approval by lawmakers in respective countries. Zlatica Hoke reports Obama is facing strong opposition to the deal, including from members of his own party.

Video Clinton Seeks to Boost Image Before Upcoming Debate

The five announced Democratic party presidential contenders meet in their first debate next Tuesday in Las Vegas, Nevada. Former secretary of state Hillary Clinton continues to lead the Democratic field, but she is getting a stronger-than-expected challenge from Vermont Senator Bernie Sanders. VOA National correspondent Jim Malone has more from Washington.

Video Music Brings Generations Together

When musicians over the age of 50 headline a rock concert, you expect to see baby boomer fans in the audience. Boomer rock stars have boomer fans. Millennial rock stars have millennial fans. But this isn’t always the case. Take the Lockn’ Music festival which took place in mid-September in rural Arrington, Virginia. Here, Jacquelyn de Phillips discovered two generations of people who are considered quite different in the outside world, spending 4 days together in music-loving harmony.

Video Ukranian Artist Portrays Putin in an Unusual Way

As Russian President Vladimir Putin was addressing the United Nations in New York last month, he was also being featured in an art exhibition in Washington. It’s not a flattering exhibit. It’s done by a Ukrainian artist in a unique medium. And its creator says it’s not only a work of art - it’s a political statement. VOA’s Tetiana Kharchenko has more.

Video South Carolina Reels Under Worst-ever Flooding

South Carolina is reeling from the worst flooding in recorded history that forced residents from their homes and left thousands without drinking water and electricity. Parts of the state, including the capital, Columbia, received about 60 centimeters of rain in just a couple of days. Authorities warn that the end of rain does not mean the end of danger, as it will take days for the water to recede. Zlatica Hoke reports.

Video Russia’s Syria Involvement Raising Concerns in Europe

European nations are joining the United States in demanding that Russia stop targeting opposition groups other than the Islamic State militants as Russian warplanes continue to conduct raids in Syria. The demand came in a statement from Britain, France, Germany, Qatar, Saudi Arabia, Turkey and the United States Friday. VOA Europe correspondent Luis Ramirez reports.

Video Nano-tech Filter Cleans Dirty Water

Access to clean water is a problem for hundreds of millions of people around the world. Now, a scientist and chemical engineer in Tanzania (in East Africa) is working to change that by creating an innovative water filter that makes dirty water safe. VOA’s Deborah Block has the story.

Video Demand Rising for Organic Produce in Cambodia

In Cambodia, where rice has long been the main cash crop, farmers are being encouraged to turn to vegetables to satisfy the growing demand for locally produced organic farm products. Daniel de Carteret has more from Phnom Penh.

Video Botanists Grow Furniture, with Pruning Shears

For something a bit out of the ordinary to furnish your home, why not consider wooden chairs, crafted by nature, with a little help from some British botanists with an eye for design. VOA’s Jessica Berman reports.

VOA Blogs