The continuing Sino-Russian energy negotiations could result in large natural gas deals that will benefit both sides while oil pipeline relations thaw.
The talks regarding energy supplies between the two countries have been intensifying over the last few months and have yielded positive results, according to Chinese foreign ministry spokesman Chen Guoping. The agreement for long-term deliveries of gas will provide a much needed cash infusion for Russia and a stable energy source for China's energy-hungry economy.
The negotiations, held in Moscow, between Russian Deputy Prime Minister Igor Sechin and China's Vice Premier Wang Qishan, resulted in a contract to deliver some 78bn cubic meters of natural gas for the next 30 years. President Hu Jintao iexpected to arrive in Moscow on June 10 to complete the signing.
In addition, Gazprom, Russia's national gas monopoly, has agreed to finance and build the pipeline expansions which will cover some of Asia's most hostile terrain. The massive project will go along way towards sustaining China's enormous demand for natural gas, estimated at 90 billion cubic meters in 2010.
While increased gas demands were the main focus of the talks, oil, coal, and electricity deliveries were also on the agenda. The goodwill was extended further with the news that the two countries have agreed to freeze prices on oil supplies via the East Siberia-Pacific oil pipelne which exports crude to the Asia-Pacific region.
Despite an earlier payment dispute this year, pipeline operators Transner and oil producer Rosneft agreed to maintain supplies under a $22bn deal.