Russia and China agree to major gas pipeline deal
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The news: Russia’s Gazprom says the company has signed a binding agreement to build the ‘Power of Siberia 2’ gas pipeline to China via Mongolia as the countries’ leaders meet in China.
The numbers: The gas producer could send as much as 50 billion cubic metres per year via the pipeline for 30 years.
The context: In comments made to Russian publications from Beijing, CEO of Gazprom Alexey Miller said that the price for the fuel would be lower than what the company currently charges customers in Europe.
The deal includes a 30 year supply agreement, Miller was quoted saying by Russia’s TASS news agency and that “It will be the largest, most extensive, and most capital-intensive gas project in the world.”
Russia has been working to get the deal off the ground with China for years, as President Vladimir Putin increasingly turns to China to replace Europe as its biggest gas buyer.
China’s state-owned Xinhua News Agency is yet to specifically mention the pipeline, though it reported that the two countries signed more than 20 cooperation agreements, including in the field of energy on Tuesday.
Putin said that Russia’s relationship with Beijing had reached an “unprecedently high level” as he spent hours with Xi Jinping.
Both Putin and North Korean leader Kim Jong Un are expected to attend a massive military parade to be held in the Chinese capital on Wednesday.
The sources: TASS, Xinhua News, Bloomberg, CNN
