Gazprom, CNPC finalize gas export terms, expect for price.

27/9 Tass 123

BEIJING, September 27 (Itar-Tass) - Russia's gas giant Gazprom and
China National Petroleum Corporation have signed the main conditions of
Russian gas exports to China and still have to finalize the export price.
The document signed in the presence of the two countries' presidents
Dmitry Medvedev and Hu Jintao coordinates "all main issues pertaining to
Russian gas exports to China, except for the price," Energy Minister
Sergei Shmatko, who is accompanying Russian President Dmitry Medvedev on
his visit to Beijing, said on Monday.
Gazprom CEO Alexei Miller and China National Petroleum Corporation
President Jiang Jiemin put their signatures to the document.
Gazprom Deputy CEO and Gazpromexport chief Alexander Medvedev told
reporters "under the effective road map the contract on gas supplies from
Russia to China that will set the routes, volumes and price will be signed
no later than on July 1, 2011."
In reply to the question to specify what the export price will be he
declined to answer.
Shmatko noted that "a considerable step forward in coordinating the
export terms has been taken."
"LUKOIL's agreements are preliminary," the minister said. "At present,
(the talks of LUKOIL) are not used as an argument in the negotiations that
Gazprom is conducting," Shmatko said in reply to the question whether
agreements of LUKOIL and Gazprom do not get in each other's way.
Earlier, Vice Premier Igor Sechin, who is also accompanying President
Medvedev, said Russia plans to begin gas exports to China in 2015 and the
commercial contracts will be signed before the middle of 2011.
"Russia is ready to fully meet China's gas demands," he said.
"We conducted and will conduct the talks with Chinese partners, we
continue to coordinate certain parameters of the agreements that will be
additionally considered by the parties," he said.
Sechin reiterated that "the current gas consumption in China's total
energy consumption accounts for 7-8 percent, while the main energy carrier
is coal."
"Therefore there are no restrictions on the growth of gas consumption
in China, while Russia has gas volumes necessary for China," Sechin said
adding that the two countries' cooperation in the gas sector is strategic.
The Russian vice-premier said China's annual gas output is 82-83
billion cubic meters and of late it almost doubled. China imports 7
billion cubic meters a year.
"The talks are long-running over the scale of the problem," he said.
"Russia is China's natural partner. The talks focus on all elements of
cooperation - infrastructure, different routes and loan extension. We have
mutual understanding."
"If we agree on all elements, we will begin supplies as of 2015 and
will sign commercial contracts as of the middle of 2011," Sechin said.
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