Russia eyes commercial gas deal with China next year
A visit by Russian President Dmitry Medvedev to Beijing has not brought a deal on gas pricing with China, the vital element that would allow the world's top gas exporter to sell to the fast-growing Chinese market.
"We are still in talks, the talks will continue, we are now agreeing on separate parameters," Russia's Deputy Prime Minister Igor Sechin told reporters on Monday.
"Russia is ready to fully ensure China's increasing demand for gas... There is a mutual understanding. If we come to an agreement on all matters discussed -- we have no doubts in it in principle -- then Russian gas exports will start from 2015. We expect commercial contracts by the middle of 2011."
China is planning to double the share of gas in its energy mix over the next decade as part of a wider drive to wean its booming economy off coal, the cheapest but dirtiest fossil fuel.
Russia, which has the world's biggest gas reserves, is keen to diversify its exports away from Europe by building new pipelines and selling gas overseas in the form of liquefied natural gas.
Russia is due to start exporting crude oil to China next year via the new East Siberian-Pacific Ocean pipeline, but a gas pipeline deal with China has not yet materialised, despite the huge potential of Russian supply and Chinese demand.
"Practically, there are no limits for the growth of gas consumption in China," said Sechin. "Secondly, Russia has all the gas needed for China's economic development."
Sechin, who is chairman of Russian oil giant Rosneft (ROSN.MM) and oversees the country's energy and metals industries, added that Chinese funding of future gas exports and pipeline building was also a subject of Medvedev's talks in Beijing.
"All elements of partnership are being considered: infrastructure, routes, deposits, shipments and cooperation in the financial sphere."
During his three-day trip to China, Medvedev is also expected to discuss wider trade cooperation. Russia has already built a nuclear reactor in China and plans to supply the bulk of the crude oil processed by a $5 billion refinery that is being built in Tianjin, a port city near Beijing.
Russia's Transneft (TRNF_p.MM) pipeline company and China National Petroleum Corp are also expected to sign an agreement on transporting oil from Skovorodino, where a pipeline from Siberia to the Pacific region ends, to the Chinese border city of Mohe.
"We are still in talks, the talks will continue, we are now agreeing on separate parameters," Russia's Deputy Prime Minister Igor Sechin told reporters on Monday.
"Russia is ready to fully ensure China's increasing demand for gas... There is a mutual understanding. If we come to an agreement on all matters discussed -- we have no doubts in it in principle -- then Russian gas exports will start from 2015. We expect commercial contracts by the middle of 2011."
China is planning to double the share of gas in its energy mix over the next decade as part of a wider drive to wean its booming economy off coal, the cheapest but dirtiest fossil fuel.
Russia, which has the world's biggest gas reserves, is keen to diversify its exports away from Europe by building new pipelines and selling gas overseas in the form of liquefied natural gas.
Russia is due to start exporting crude oil to China next year via the new East Siberian-Pacific Ocean pipeline, but a gas pipeline deal with China has not yet materialised, despite the huge potential of Russian supply and Chinese demand.
"Practically, there are no limits for the growth of gas consumption in China," said Sechin. "Secondly, Russia has all the gas needed for China's economic development."
Sechin, who is chairman of Russian oil giant Rosneft (ROSN.MM) and oversees the country's energy and metals industries, added that Chinese funding of future gas exports and pipeline building was also a subject of Medvedev's talks in Beijing.
"All elements of partnership are being considered: infrastructure, routes, deposits, shipments and cooperation in the financial sphere."
During his three-day trip to China, Medvedev is also expected to discuss wider trade cooperation. Russia has already built a nuclear reactor in China and plans to supply the bulk of the crude oil processed by a $5 billion refinery that is being built in Tianjin, a port city near Beijing.
Russia's Transneft (TRNF_p.MM) pipeline company and China National Petroleum Corp are also expected to sign an agreement on transporting oil from Skovorodino, where a pipeline from Siberia to the Pacific region ends, to the Chinese border city of Mohe.
