China denied Gazprom’s announce of agreement on gas supply

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Yesterday, the head of China’s CNPC Wang Yilin de-facto denied Gazprom’s reports on the agreement of the volume of gas supplies to China via the Altai gas pipeline.

In his interview with TV channel Russia 24, he said that the volume of 30 billion cubic meters per year was not agreed on yet, noting that he knew of such a figure only from the media. The specific amount will be determined later in the negotiations, he said.

Such conditions of supply were disclosed by Gazprom in May 2015, when the Russian company signed a memorandum with CNPC about the basic conditions of gas supply through the western route (“Power of Siberia-2”). At that time, the head of Gazprom Alexei Miller said that the pipeline is planned to deliver 30 billion cubic meters of gas per year for 30 years.

In fact, this means that the negotiations the project almost did not advance since the middle of the last decade, says Kommersant newspaper. At that time China wanted Gazprom to built a 30 billion cubic meters pipe, but only agreed to buy 8-10 billion cubic meters per year.

It is impossible to negotiate the price prior to reaching an agreement on volumes. Wang Yilin said yesterday that the gas price delivered through the Altai route will differ from the gas delivered through the eastern route (“Power of Siberia”) that is currently under construction. Earlier, Alexei Miller said that Gazprom expects to sign a contract with CNPC for the Altai route in the first half of 2016.

Source: forbes.ru