Russia, China May Sign Gas Supply Deal in May

Gazprom on Wednesday said that deal to export natural gas to China could be signed in May during Russian President Vladimir Putin’s visit to the Asian nation.

The issue was discussed in Beijing during a meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC).

“Both parties are interested in successful completion of the negotiations and looking forward to signing a contract as soon as possible,” Gazprom said.

Gazprom added that the contract would enter into force in accordance with the previously agreed Major Terms – till late 2014.

In March 2013 Gazprom and CNPC signed the Memorandum of Understanding (MoU) for cooperation between the two companies in pipeline gas deliveries to China via the eastern route.

In September 2013 Gazprom and CNPC inked the agreement on the major terms and conditions of pipeline gas supply from Russia to China via the eastern route.

News agency Reuters in a related report said that Gazprom may offer a lower price in return for billions of dollars in upfront payments.

However, a source close to the Russian company told Reuters that price terms had still not been agreed.

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