#AceWorldNews – RUSSIA/CHINA – May 21 – After 10 years of negotiations, Russia’s Gazprom and China’s CNPC have finally signed a historic gas deal which will provide the world’s fastest growing economy with the natural gas it needs to keep pace for the next 30 years.
The total value of the contract is $400 billion, Gazprom CEO Aleksey Miller said. However, the price of gas stipulated in the document remains a “commercial secret.”
Assuming the overall price of the contract includes only the cost of supplies of Russian gas, than the $400 billion price tag means China will pay about $350 per 1,000 cubic meters.
To date, this is the largest contract for Russia’s largest gas producer which has no such contract with any other company.
Russia will supply China 38 billion cubic meters of gas per year via the eastern ‘Power of Siberia’ pipeline, which crosses Siberia and reaches China’s populous northeast regions.
A memorandum of understanding was signed in the presence of Russian President Vladimir Putin and President of China Xi Jinping on the second day of Putin’s two-day state visit to Shanghai.
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