December 04, 2008

China and Russia reach agreement on gas prices

Itar-Tass reported that China National Petroleum Corporation and Russia’s Gazprom have reached agreement on setting gas prices.

The report cited Alexander Medvedev deputy board chairman of Gazprom as confirming this development without giving the details of the agreements reached.

An agreement on Russian gas supplies to China was signed in 2006 under which Russia should supply to China 68 billion cubic meters of gas till 2020. At present, the sides are discussing different variants of transportation, including the construction of two gas pipelines. But a final decision on the routes has not specified yet.