Izvestia: "Russia, China discuss gas deal"
Russian Prime Minister Vladimir Putin is to meet with Wen Jiabao, Premier of the State Council of China, today. Izvestia discovered that the two heads of government plan to sign more than ten agreements following their meeting. The talks will probably focus on the price of Russian natural gas to be supplied to China after 2015.
China badly needs Russian fuel. Next year, it will have to import 35% of gas for its domestic needs, according to Yin Jianping, a business professor at the China University of Petroleum as quoted by the China Business News. This demand will continue growing for another decade. Annual gas consumption in 2015 may exceed 150 billion cu m and reach 200 billion cu m in 2018. Therefore, in 2015, the Chinese economy will experience a shortfall of 38 billion cu m, and in 2021, as much as 110 billion, the expert said.
That is probably why China is determined to bargain for every cent when discussing the price of Russian supplies. Last month, Russia's Gazprom and China's CNPC finally agreed on the key parameters of a gas contract: Russia will supply 30 billion cu m annually for 30 years starting in 2015. The final contract is to be signed in mid 2011.
The gas price talks aren't proceeding smoothly. Until recently, the difference between Russia's asking price and China's offer was around $100 per 1,000 cu m. However, the sides brought their positions closer shortly before Wen Jiabao's visit to Moscow. Some reports say that the Chinese are now ready to pay $150-$165, while Gazprom insists on no less than $185 per 1,000 cu m.
Apart from natural gas supplies, Vladimir Putin and Wen Jiabao have other issues to discuss during their meeting. Izvestia discovered that they also plan to discuss cooperation in nuclear power, air transport, railways, and the protection of intellectual property rights. They will sign a series of cooperation deals as a result.
The day before Wen Jiabao's visit, Russian Deputy Prime Minister Igor Sechin and his Chinese counterpart, Vice-Premier Wang Qishan signed six energy agreements as part of the two countries' energy dialogue.
Pavel Arabov
