Related Articles
Forward article link
Share PDF with colleagues

Russia and China deal holds new opportunities

Russia has long craved the Chinese market and China needs gas. The $400 billion deal opens a new trade

Fifteen years after starting negotiations, Russia and China signed a 30-year gas-sales agreement in Shanghai on 21 May. Gazprom agreed to supply 38 billion cubic metres per year (cm/y) – or roughly one-fifth of Chinese gas demand last year – from its East Siberian fields into northeast China through the soon-to-be-built Power of Siberia pipeline. Details on pricing and the timing of first deliveries for the landmark deal are not clear, but initial gas flows are expected through the pipeline starting 2020.  It appears that China will not participate in the gas resource development in Russia, which simplifies the deal structure. But Chinese companies might be invited to help build the pipelin

Also in this section
Serica sanguine on Iran sanctions
13 July 2018
The firm's historic links to Iran are in the spotlight as US sanctions resume
The return of cautious optimism in the North Sea
13 July 2018
The UK’s North Sea hub, braced for production declines, has received a boost from new investments and revived interest from the supermajors
China loans make Venezuela’s outlook more precarious
12 July 2018
Patience is wearing thin among both China and other trading partners