Finland, Russia have no serious problems in their relations — top diplomatWorld February 27, 21:49
Brazil's joyful carnivalSociety & Culture February 27, 21:30
Syrian opposition has no dialog partner seeking peace — chief negotiatorWorld February 27, 20:37
About 40 Arctic projects may be in Russia's Yamal backbone zone — governorBusiness & Economy February 27, 19:28
Russian Defense Ministry forms special purpose division near MoscowMilitary & Defense February 27, 19:13
Russian frigate in Mediterranean to deliver no strikes on terrorists in Syria — sourceMilitary & Defense February 27, 18:54
First stage of Arkhangelsk deepwater port to go operational by 2025Business & Economy February 27, 18:45
Cairo group says military option in Syria 'ruled out' after recapture of AleppoWorld February 27, 18:31
Communication breakdown between Russia and EU deters fight against real threats — MPRussian Politics & Diplomacy February 27, 17:40
SHANGHAI, May 21. /ITAR-TASS/. The price of Russian natural gas for China under bilateral contract signed on Wednesday is based on the market price on oil and oil products, Russian President Vladimir Putin said.
Russian investments into the infrastructure for transporting gas to China, compressor stations will total $55 billion, according to Gazprom CEO Alexei Miller.
Russian gas supplies to China via the eastern route may begin in four to six years’ time, Energy Minister Alexander Novak told the media.
“This is linked to it as a formula of computing the price for European consumers. This is a formula which is pegged to the market price of oil and oil products,” Putin said.
The Russian president called the reached agreements on Wednesday as the largest ever in the history of the Russian and Soviet natural gas sector.
He said it would take four years to implement the contract, while investments into the project would exceed $70 billion both from China and Russia.
Putin added that Russia and China began joint work on the development of the western route of natural gas supplies to China with possible diversification of the route.The major contract signed on Wednesday was negotiated for several years. Gazprom expected to get $400 as a starting price for 1 thousand cu. m. of gas for China. The Chinese side wanted to buy gas for $350-360.
The price of Russian gas for China would be no less than $400 for 1,000 cubic meters, an expert of the Eurasian Development Research Center of the Chinese State Council said in April. Inclusive of infrastructure costs, supplies to China would cost no less than $400 for 1,000 cubic meters, given Russia’s export price of $380 for 1,000 cubic meters, he said.
Deputy Director of the Institute of Energy Strategy Alexei Belogoryev then estimated the contract price at $350-400 for 1,000 cubic meters. Director of the Energy Development Fund Sergei Pikin predicted a price of about $380.