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Author: Source: the Internet Published time: May 22, 2014
On May 21, Chinese president Xin Jinping and Russian president Vladimir Putin together witnessed the signing of the Memorandum on Eastern-Route Natural Gas Cooperation Project between China and Russia and Eastern-Route Gas Supply Purchase and Sales Contract between China and Russia between CNPC and Gazprom.
As agreed by both parties, Russia will supply gas to China via the eastern route of the Sino-Russian Natural Gas Pipelines as of 2018, while the volumes will increase year by year and finally reach 38 billion cubic meters per year over an accumulative period of 30 years.
This Sino-Russian cooperation in natural gas has been achieved through the efforts of the enterprises in both countries under the direct guidance, involvement, the support, and promotion from the leaders of both countries. It is a milestone in the joint effort of China and Russia to strengthen their comprehensive partnership in energy and fully deepen their strategic partnership by upholding the principle of mutual trust and benefits. Both parties will work together to implement relevant work and ensure a perfect implementation of the project.
As reported by the media, the negotiations on natural gas supplies between China and Russia have been going on for a decade, the biggest obstacle being the price and the renewal of natural gas pipeline construction.
Media reports revealed that the total price of this agreement is US$456 billion.
As mentioned by the media before, there is one completed natural gas pipeline – Siberian Power – from Russia to the Sino-Russian borders. If this pipeline, crossing the Far East Region of Russia, smoothly extends to China in 2018, it will likely connect to the densely populated Beijing and North China first.
However, the costs for the extension are estimated at US$22 billion to 30 billion. Russia hopes that China can share part of the costs or provide some loans for this project.
