“Mammoth” Sino-Russian $400 bn. natural gas deal

After ten years of negotiations

After ten years of negotiations, Russian company Gazpron and Chinese CNPC finally signed a historic gas deal which will provide the fastest growing economy of the world, the natural gas it needs for the next 30 years!

The total value of the contract signing amounts to $ 400 billion, as Gazprom CEO, Alexei Miller, stated. However, the price of natural gas within the signed document remains a “trade secret”.

Assuming that the total value of the agreement only includes the cost of supplies of Russian natural gas, the amount of 400 billion dollars that China will pay means that it will be paying about $350 per 1,000 cubic meters.

Russia will supply China with 38 billion cubic meters of natural gas annually through the “Power of Siberia” eastern pipeline which crosses Siberia and reaches the populous regions of northeast China.

The MoU was signed in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping, on the second day of the two-day official visit of the former, to Shanghai.