News / Asia

China, Russia Sign Major Gas Deal

China, Russia Sign 30-Year Gas Deal, Broaden Cooperationi
X
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
X
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.

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Comment Sorting
Comments
     
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.

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