Gazprom, CNPC to Sign Gas Supply Deal By Year End

Gazprom and China National Petroleum Corp (CNPC) are likely to decide on the gas supply deal by the end of this year, according to Wall Street Journal.

The Russian company has inked initial agreement with the Chinese energy major for supply of 38 billion cubic meters of gas a year, but a final agreement in pending, Wall Street Journal said.

In September, the two parties signed an agreement in Saint Petersburg outlining the major terms and conditions of pipeline gas supply from Russia to China via the eastern route.

Agreement touched upon issues like export volume and starting date, the take-or-pay level, the period of supply build-up, the level of guaranteed payments, the gas delivery point on the border as well as other basic conditions of gas off take.

Active energy cooperation between China and Russia is seeing breakthroughs, said Alexander Novak, Russia's energy minister on the sidelines of the World Energy Congress, added Wall Street Journal.

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