• Fri
  • Aug 1, 2014
  • Updated: 2:28am
NewsChina
ENERGY

China, Russia sign historic natural gas supply deal worth US$400b after decade of talks

Xi and Putin witness conclusion of long-awaited agreement under which Moscow will supply 38 billion cubic metres of gas annually for 30 years

PUBLISHED : Wednesday, 21 May, 2014, 5:51pm
UPDATED : Thursday, 22 May, 2014, 5:20pm

China and Russia signed a long-awaited natural gas supply deal worth US$400 billion in a diplomatic boost to show the unity of the two nations.

The signing, witnessed by President Xi Jinping and his Russian counterpart Vladimir Putin, was made on the sidelines of a regional forum at which Xi warned against the establishment of military alliances in Asia and called for a new regional security co-operation mechanism.

Under the agreement, Russia's Gazprom will supply China National Petroleum Corporation with 38 billion cubic metres of gas annually for 30 years.

Gazprom CEO Aleksey Miller told Russian news network RT that the contract was worth a total of US$400 billion, but the price of gas stipulated in the deal remained a "commercial secret".

Hopes of a deal were running high when Putin kicked off his two-day Shanghai tour on Tuesday. But it could not be signed after talks between Putin and Xi that day, and representatives from the two sides continued negotiations until yesterday.

Watch: China and Russia sign huge gas deal

Observers said the signing of the deal after negotiations lasting more than a decade because of pricing differences was a boost to both nations, especially for Russia amid Western sanctions over its intervention in Ukraine.

The signing was a "tangible result" for Putin that he could get things done despite his difficulties with the West, said Rafaello Pantucci, a senior research fellow with the Royal United Services Institute, a defence and security think tank in Britain.

Industry estimates showed that the price of the agreement may have come in at around US$350 per thousand cubic metres, Reuters reported. The western European average is US$380.

Li Lifan, an expert in Russian affairs at the Shanghai Academy of Social Sciences, reckoned the gas price would be higher than original Chinese estimate. "China wants to show unity with Russia, and hopes to secure its support when making a larger presence in Asia," he said.

The deal was clinched shortly before Xi wrapped up the Conference on Interaction and Confidence Building Measures in Asia.

The previously little-known 26-member forum, established in 1992, was given added weight this year as Beijing tries to extend its regional influence. Russia, Vietnam, India and Iran are among the members, while the United States, Japan and the Philippines are observers.

Without naming any nation, Xi said: "Beefing up military alliances targeting a third party is not conducive to maintaining common regional security." Last month Beijing warned Washington against creating an "Asian Nato" by stepping up security alliances with China's neighbours.

Xi called for the forum's scope to be expanded to cover the whole of Asia, and for the establishment of a defence dialogue among member states to be explored.

"It is for the Asian people to uphold Asia's security," he said.

Observers said Xi's remarks were aimed at Washington, even though Beijing will not set up a bloc against the US.

"Beijing is saying that Asia is no longer the realm for US leadership," said Benjamin Herscovitch, a research fellow at Australian think tank The Centre for Independent Studies.

Share

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

58

This article is now closed to comments

Formerly ******
And as soon as China behaves contrary to Russia's wishes, good-bye natural gas deal; please consult further Russia's dealings with many of its former republics. Of course, once the US decides to really mess with Russia and its supporters, such as China, the US will strengthen the dollar, thus driving to all-time lows the prices of oil and natural gas. Concomitant to this, the economy of Russia will go third-world.
Add to this a military alliance of ASEAN countries, combined with trade deals among the ASEAN nations and, presto, there goes any benefit of the new Russo/Sino coziness. Of course, Russia and China might be able to count upon support from North Korea, a concentrations camp masquerading as a country.
Two things to keep mind. In the 1700's, Russia pretty much took from China all of the territory Russia wanted to take in Siberia. Likely, China hasn't forgotten this. Second, this alliance will hasten military and economic cooperation among all of the Asian nations not named China. They'll see that they need a strong alliance backed by the US.
只要中國的行為違反了俄羅斯的意願,再見天然氣處理 ;請進一步諮詢與許多其前共和國俄羅斯的交易。當然,一旦美國決定真的惹俄羅斯和它的支援者,比如中國,美國將加強美元,因而駕駛到最低點石油和天然氣的價格。伴隨對此,俄羅斯的經濟將會第三次世界。
將添加到此的東盟國家的軍事聯盟,與東盟國家和 presto 之間的貿易交易相結合,那裡去新俄/中舒適感的任何好處。當然,俄羅斯和中國可能能夠指望從朝鮮,偽裝成一個國家一個濃度陣營的支援。
要保持頭腦的兩件事。在 1700 年的俄羅斯漂亮多了從中國的領土俄羅斯所有想要在西伯利亞。很可能,中國還沒有忘記這一點。第二,這一聯盟將加快之間所有未命名中國的亞洲國家的軍事和經濟合作。他們會看到他們需要由美國支援的強大聯盟。
dharmakarma
Don't even joke about it
5359337f-85d8-4858-a065-34fa0a320969
Your Chinese translation does not make any sense, stupid kid. Your economic and political senses are so childish that I suggest MI6 to retrain you. What makes you think the transaction will be conducted in USD? Even if it will be conducted in USD, what makes you think USD can be strengthened at will? Are you aware the US is in a critical deficit position that they are already pulling back on QE?
Ihre Chinesisch-Übersetzung macht keinen Sinn, dummer Junge. Ihre wirtschaftlichen und politischen Sinne sind so kindisch, dass ich vorschlagen, MI6, Sie umzuschulen. Was macht Sie glauben, die Transaktion wird in USD durchgeführt werden? Auch wenn es in USD durchgeführt werden, was Sie denken USD kann beliebig verstärkt werden? Sind Sie sich bewusst die USA in einer kritischen Position Defizit, dass sie bereits wieder auf QE ziehen?
Ваш китайський переклад не має ніякого сенсу, дурне дитина. Ваші економічні та політичні почуття так по-дитячому, що я пропоную, МІ-6 переучувати вас. Що змушує вас думати угода буде проводитися в доларах США? Навіть якщо це буде проводитися в доларах США, що змушує вас думати USD може бути посилена за бажанням? Чи знаєте ви, що США знаходиться в критичному положенні дефіциту, що вони вже відходили на QE?
Formerly ******
Dear Dumb F*ck ******:
You stupid fool. The transaction will be in gold or US dollars. Neither Russia nor China are trustworthy or trusting of each other. You're an idiot clown with no understanding of anything.
Lieber dumm **** ***:
Du dummer Idiot. Die Transaktion wird in Gold oder US-Dollar. Weder Russland noch China sind vertrauenswürdig oder Vertrauen zueinander. Du bist ein Idiot-Clown mit kein Verständnis für alles.
Уважаемые немой ебешь ***:
Вы глупый дурак. Сделка будет в золотом или долларах США. Ни Россия, ни Китай являются надежными или доверять друг другу. Ты идиот клоун без понимания чего-либо.
親愛的這個蠢 * * *:
你傻的傻瓜。該事務將黃金或美元。俄羅斯和中國都不是值得信賴或彼此的信任。你是白癡小丑與不理解的東西。
5359337f-85d8-4858-a065-34fa0a320969
Wow, peanut-brain Formerly, all of a sudden you have become an insider of the China-Russia gas deal? If the two nations don't trust each other, they won't enter into this transaction in the first place. Where did you read the deal "must" be conducted in gold or USD? Do us all a favor, don't continue to make a fool out of yourself; I enjoyed cracking up on your jokes, but it's a disgrace to your country.
The only thing your translation non-senses do is prove that you're a clown.
ldAsia
Beautiful and smart deal - congrats to both countries. This is only the beginning. Keep your eyes open - more to come. Smart Putin made such lightning speed decision to work with a soon to be #1 economy in the world. Two BIG Giants get together can level a mountain in a split second. Way to go, keep on trucking!!
Formerly ******
Dear IdAsia:
What are the natural resources of China? How much fresh water has China? How many arable acres of land (it's decreasing every year) has China? What of China's aging population, diminishing environment, and increasing corruption (yes, notwithstanding the latest grandstanding by the King Commie of China)? This also applies to Russia - a country with even worse demographics, a life expectancy of a third-world country, and a national alcoholism problem that's even worse than that of the US Indian reservations.
Oh, and BTW, are you aware that the US can produce enough food to feed the world?
親愛的 IdAsia:
中國的天然資源是什麼?新鮮的水有多少中國嗎?多少可耕英畝的土地 (它減少每年),中國嗎?中國的人口老齡化,縮小的環境,和增加腐敗 (是的儘管最新的嘩眾取寵的國王共匪的中國) 的怎麼辦?這也適用于俄羅斯-一個國家,甚至更糟的人口統計資料,一個第三世界國家和一個國家酗酒問題甚至比這更糟糕的美國印第安保留的預期壽命。
哦,順便說一下,您是否知道,美國可以生產足夠的糧食來養活世界嗎?
5359337f-85d8-4858-a065-34fa0a320969
@Formerly:
We're happy for you that your dying nation have a prosperous and expanding trading platform with loads of resources and a blooming pharmaceutical industry, such as cocaine, salt, meth, ecstasy, and weed. A gun trade that's doing so well even young teenagers practice on their schoolmates. I suppose free boxing/MMA matches in bars is a popular national entertainment. Your citizens must be enjoying a great life they get to stay home all day when unemployment rate is off the chart. Oh, and BTW, the U.S. loves the environment so much that they refused to comply with the Kyoto Protocol, the single biggest movement against greenhouse emission, altogether.
@Formerly:
Estamos felices de que su nación moribunda tiene una plataforma comercial próspera y en expansión con un montón de recursos y una industria farmacéutica en flor, como la cocaína, la sal, la metanfetamina, éxtasis y marihuana. Un tráfico de armas que está haciendo tan bien que incluso los adolescentes jóvenes practican en sus compañeros de escuela. Supongo partidos boxeo libre / MMA en los bares es un entretenimiento popular nacional. Sus ciudadanos deben estar disfrutando de una gran vida llegan a qued**** en casa todo el día cuando la tasa de desempleo es de fuera de la tabla. Ah, y por cierto, los EE.UU. le encanta el ambiente de tanto que se negaban a cumplir el Protocolo de Kioto, el único gran movimiento en contra de las emisiones de efecto invernadero, por completo.
Formerly ******
Dear Dumb F*ck******:
Your English is so bad, that nothing written by you makes any sense. The word "nation" is singular and needs the verb 'has,' not "have."
And how many Chinese want to immigrate to the US? And how many Americans want to immigrate to China? In fact, why is it that the US is the first choice for those seeking freedom and opportunity?
Why are so many of China's princes, high government officials, and tycoons buying US real estate property? Same question for these categories of Russians.
Dude, wake up and smell coffee. China has neither the land or water to feed itself or quench its thirst. Once all of Asia unites against overbearing and aggressive China, it's game over, you clown. They could starve to death China.
親愛傻他媽的 * * *:
你的英語不好,你所寫的東西有任何意義。"民族"一詞是單數和需要動詞有,不"有"。
和多少中國人想移民美國嗎?許多美國人怎麼想要移民到中國。事實上,美國是為那些數位選擇它為什麼尋求自由和機會?
為什麼這麼多的中國的王子、 高級政府官員和購買美國房地產大亨嗎?同樣的問題,為這些類別的俄國人。
老兄,醒了,聞到咖啡。中國有土地或飼料本身或其解渴的水都沒有。一旦所有的亞洲團結反對傲慢和侵略中國,它是遊戲結束,你的小丑。他們可能餓死中國。
Estimado maldito tonto ***:
Su inglés es tan mala, que nada escrito por ti tiene sentido. La palabra "nación" es singular y necesita el verbo "tiene" no "tener".
¿Y cuántos chinos quieren inmigrar a los Estados Unidos? Y cuántos americanos quieren inmigrar a China. De hecho, ¿por qué es que Estados Unidos es la opción número para aquellos que buscan libertad y oportunidades?
¿Por qué son tantos funcionarios del alto gobierno, príncipes y magnates comprando
5359337f-85d8-4858-a065-34fa0a320969
Peanut-brain Formerly,
You must have been so self-centered that you think the whole world revolves around the U.S. Do you know how many other choices the Chinese can choose if they wanna immigrate to another place? I'm sorry to inform you, but U.S. is definitely not the number one choice. As for the rationale, I hope you are smart enough to know. On the contrary, there haven't been more U.S. citizens, particularly the HNWIs, tycoons, and princes, ditching their U.S. nationality in the past couple of years than in any other periods in U.S. history. For a frog in a well, you probably haven't yet realized the stellar amount of foreigners starting to learn Chinese and move to China to live instead. Even though some of those expats may want to get Chinese citizenships, it is currently close to impossible for them to obtain amid stringent Chinese immigration policies.
Same goes for real estate, U.S. is definitely not the Chinese's number choice for obvious reason. The rationale behind the Chinese investing into real estate elsewhere apart from their own country is also so so so so obvious. Beg you to please come back down to Earth and read up more news other than tabloids, peanut brain. In the meantime, enjoy the high school gun shoot-outs and the widespread cracks in your so-called "land of freedom and opportunity".

Pages

 
 
 
 
 

Login

SCMP.com Account

or