Russia and China sign major gas pipeline deal for 30 years
Saturday, February 5, 2022
Yesterday, Russia signed a 30-year deal to supply gas to China, strengthening the energy alliance between the two countries. President Putin met with his counterpart Xi Jinping, promising to increase trade exports from the Russian Far East region to China. The meeting took place while the Russian president was on a visit to China for the 2022 Winter Olympics.
With this new plan, Russia aims to increase its gas supply to China by 10 billion cubic metres per year, adding up to a total supply of 48 billion cubic metres per year. The new project is estimated to be worth $117.5 billion. The Russian gas giant Gazprom has agreed to take part in the deal by supplying the gas to China National Petroleum Corporation. According to a statement released by Gazprom, the project is due to start in two to three years.
The Russian president expressed appreciation for the deal by saying that, "a step forward was made in the gas industry". Russia already supplies liquefied natural gas to China via the Power of Siberia pipeline. The deal will be denominated in Euros due to efforts by the two countries to diversify their foreign trade away from US dollars.
Related news[edit]
- "China and Russia sign trade deals worth US$3.5 billion" — Wikinews, October 13, 2009
Sources[edit]
- Chen Aizhu. "Russia, China agree 30-year gas deal via new pipeline, to settle in euros" — Reuters, February 4, 2022
- Press Release: "Gazprom and CNPC sign agreement to supply Russian pipeline gas to China via Far Eastern route" — Gazprom, February 4, 2022
- "Putin hails China oil and gas deals amid tensions with Europe" — Al Jazeera, February 4, 2022
