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Russia’s gas contract with China opens world market competition for Russian gas resources

Gazprom CEO Alexei Miller says the major gas deal with China is a historic event

Gazprom CEO Alexei Miller EPA/YURI KOCHETKOV

Gazprom CEO Alexei Miller

© EPA/YURI KOCHETKOV

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Gazprom, CNPC agree on $25 billion advanced payment on gas contract

ATHENS, May 29. /ITAR-TASS/. Russia’s contract on gas supplies to China was a milestone event opening competition of world markets for Russian gas resources, Alexei Miller, the CEO of Russia’s gas giant Gazprom, said on Thursday.

“Last week saw a really historic event: we signed a contract on gas supplies to China,” Miller said at the 17th annual general meeting of the European Business Congress in Athens. “This is a long-term contract - it provides for the supply of 38 billion cubic meters of gas for a period of 30 years. Worth $400 billion, it is the biggest contract in the entire history of the gas sector.”

“This is really a milestone event: Russia’s Gazprom with its pipeline gas has entered the Asian market, the biggest and most dynamically developing market, which opens vast possibilities for suppliers,” he noted. “We are yet to understand the significance of this contract, since it will undoubtedly influence gas prices in Europe. This contract has turned a new page, which is called competition for Russian gas reserves between biggest markets. It is likewise evident that this contract will influence very expensive LNG projects in Australia, Western Canada, Eastern Africa.”

Nonetheless, Europe, according to the Gazprom CEO, has always been and will be number one market for Russia. “Gazprom will spare no effort not only to keep its share on the European market but to increase it, but, at the same time, it will expand its presence on the Asian market,” he said. “The 38-billion-cubic-meter contract is just the beginning. We have more contracts ahead."

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China Oil & Gas Gazprom

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